11 builders in Noida issued notice over diverting money from buyers

Noida: The Noida Authority on Sunday issued notices to 11 builders and their projects, as they were found suspicious of diverting money collected from homebuyers, following a report submitted by the international consutancy firm, Currie & Brown, which was appointed to audit into the accounts of these builders.

"The audit was carried into accounts of 14 erring builders, following which 11 were found suspicious and have been issued notice. The detailed analysis of the report submitted by the agency showed no misuse or diversion of funds collected by the homebuyers into other projects.

"However, the money collected from the homebuyers and the expense on the housing project showed variations," said Alok Tandon, Chief Executive Officer, Noida Authority.

The Authority has given seven days time to the builders to provide a clarification with respect to the notice issued.

According to the officials of the Authority, among the builders who have been issued notices include Unitech Limited, Unitech Acacia Projects Private Limited, Logix City Development Private Limited, Three C properties private limited, Gardenia Aims Developers private limited, Granite Gate Properties private limited, Red Fort Jahangir private limited, Omaxe build home and Pebbles Prolease private limited.

Unitech has been issued notice for its three projects in sectors 117, 144 and 96 in Noida.

The decision to conduct audits came after homebuyers alleged that the builders have diverted funds collected from them into other projects, thus failing to deliver the possession of their flats by the promised date.

Following this, the Authority had, on November 8 last year, hired Currie & Brown to audit accounts of the 51 defaulter builders, who are facing charges of diversion of funds collected from various homebuyers.

In the first phase, the agency conducted audits of accounts of 14 builders, having around 36,000 flats in their various housing projects.

The audit of accounts of the remaining 37 builders will be done in the second phase.