The Noida Authority has issued notices to builders of 11 projects for allegedly diverting money to the tune of Rs 40 billion meant for completing the residential flats booked by thousands of homebuyers.
It comes on the heels of the recently concluded audit of 14 projects by international firm M/s Currie & Brown.
Authority Chairman & CEO Alok Tandon told TOI that “the range of diversion of funds varied from Rs 1.50 to Rs 5 billion in each separate case.
The audit had detected a difference between income and expenditure in the builders’ accounts in the residential projects audited by the firm, he said.
The number of housing units in the 14 audited projects is nearly 36,000. Most of them have been stuck and homebuyers have been vainly trying to get possession.
“The developers have no choice but to bring these projects back on track and deliver them to homebuyers,” he said. “We have also informed the Real Estate Regulatory Authority (Rera) about the audit for further action,” he added.
The developers had failed to clear the land dues owed to the Authority which runs to more than Rs 70 billion.
Audit of 37 projects involving nearly 37,000 housing units in Noida will begin shortly.