These banks — nationalised and private, financed over Rs 200 crore to a builder to construct 14-storey residential tower at Sector 86 in Noida. The cost of the flats ranged from Rs 50 lakh to one crore.
But, the preliminary investigations done by the city planner — New Okhla Industrial Development Authority (NOIDA) have found the project to be completely illegal and have stopped the construction.
It’s pertinent to mention that banks are required to conduct legal and technical scrutiny of any real estate project before financing it.
The Millennium Post, in its report titled ‘House of Cards’ on 17 May, had highlighted the nexus between bank officers, builders and legal experts to finance illegal constructions. But bank officials have not learnt any lessons.
According to NOIDA officials, the project titled Iridia, is being constructed by Horizon Concept Group, without approval of concerned authority.
It was revealed that the building layout of the project was passed by district panchayat instead of authority. Under UP Industrial Act 1976, district Panchayat has no right to pass building plans in Noida.
Apart from this, not a single housing project is proposed under the Master Plan 2021 in the area where project is coming up.
Interestingly, the illegal project is being financed by SBI, UCO Bank, Allahabad Bank, Indian Overseas Bank, Bank of India, Axis bank and India bulls.
‘After initial investigations, it also appeared that the builder ignored instructions of NGT for use of ground water. There were no approvals for sewer lines, electricity connections and other types of NOCs which are mandatory to get competition certificate. We have booked the builder and have arrested two persons also’, said VK Panwar, additional CEO of Noida Authority.
The builder, on the other hand, has claimed that the land where project was being developed did not fall under the authority’s jurisdiction. ‘This six-acre site is a freehold village land procured by Kaveri Group, in association with Horizon Concept. The project was launched about two years back and the district panchayat had approved the layout plan,’ said an employee of the company.
But, the preliminary investigations done by the city planner — New Okhla Industrial Development Authority (NOIDA) have found the project to be completely illegal and have stopped the construction.
It’s pertinent to mention that banks are required to conduct legal and technical scrutiny of any real estate project before financing it.
The Millennium Post, in its report titled ‘House of Cards’ on 17 May, had highlighted the nexus between bank officers, builders and legal experts to finance illegal constructions. But bank officials have not learnt any lessons.
According to NOIDA officials, the project titled Iridia, is being constructed by Horizon Concept Group, without approval of concerned authority.
It was revealed that the building layout of the project was passed by district panchayat instead of authority. Under UP Industrial Act 1976, district Panchayat has no right to pass building plans in Noida.
Apart from this, not a single housing project is proposed under the Master Plan 2021 in the area where project is coming up.
Interestingly, the illegal project is being financed by SBI, UCO Bank, Allahabad Bank, Indian Overseas Bank, Bank of India, Axis bank and India bulls.
‘After initial investigations, it also appeared that the builder ignored instructions of NGT for use of ground water. There were no approvals for sewer lines, electricity connections and other types of NOCs which are mandatory to get competition certificate. We have booked the builder and have arrested two persons also’, said VK Panwar, additional CEO of Noida Authority.
The builder, on the other hand, has claimed that the land where project was being developed did not fall under the authority’s jurisdiction. ‘This six-acre site is a freehold village land procured by Kaveri Group, in association with Horizon Concept. The project was launched about two years back and the district panchayat had approved the layout plan,’ said an employee of the company.