CAG seeks explanation from Noida Authority over plot allotment issue

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Photo: City Spidey
Posted: Jun 22, 2019

A team of Comptroller and Auditor General (CAG), conducting an audit of Noida Authority, has sought an explanation from it regarding the allotment of plots to nearly 20 builders which comes under its jurisdiction. 

The development has come a week after Uttar Pradesh Chief Minister Yogi Adityanath reviewed all three development authorities in an hour-long meeting. Following this, the chief executive officer (CEO) of the Noida Authority held a meeting with seniors officials heading different departments and has directed them to submit their reply on queries raised by the CAG team.

Sources claimed the CAG team has submitted about five pages of queries for every project, indicating that rules were bent for allocation of all these projects between 2005 and 2015. 

The CAG team has been conducting an audit of Noida Authority’s projects for the past one and a half years and was seeking documents till now.

“The queries mention that in some cases the authority took 10 per cent instead of the requisite 30 per cent from the developers for allotment of plots. Other builders, who have been allotted the plots 10 years back, are yet to fulfill all terms,” said a source aware with the development. 

More queries are expected to line up as the CAG team goes through other project details. It has allegedly raised queries on how several builders are on defaulters’ list despite heavy discounts were offered and why the authority hasn’t taken any action against these groups yet. 

The defaulters owe over Rs 20,000 crore to the authority, which mostly includes builders of group housing societies.

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