Moneycontrol
| Source: Moneycontrol.com

Noida Authority selects agency to audit accounts of 100 builders

To pay Rs 60 lakh for audit of 36,000 units. Process expected to be completed within 40 to 45 days

Vandana Ramnani @vandanaramnani1

Vandana Ramnani
Moneycontrol News

The Noida Authority has selected an international private agency to audit accounts of 100 developers who have not cleared their dues to the authority and may have failed to deliver housing units to homebuyers on time.

Currie & Brown is the agency that has been selected to audit 36,000 units as part of the first phase. They have been given 40 to 45 days to complete the process. They will be employing six teams – each team auditing 5000 to 6000 units each, Alok Tandon, CEO, Noida Authority told Moneycontrol.

As many as 12-13 builders will be audited as part of the first phase. These include Logix, Supertech, Sikka and Aims Gardenia. The authority will be paying Rs 60 lakh (Rs 10 lakh per team for auditing 6000 units each).

“Builders have been raising demands for rescheduling of their debt to the authority. To avoid a situation wherein they benefit from relief offered by the government and it is later found that they have misused funds, it is better to get their accounts audited. The results of the audit will enable us to draw a list of builders who will not be eligible for any further relief from the government," informed Noida Authority's Chief Executive Officer Alok Tandon.

On September 12, Uttar Pradesh Chief Minister Yogi Adityanath had directed the CEOs of Noida, Greater Noida and Yamuna Expressway authorities to audit builders who have failed to deliver flats to homebuyers.

The directive came after homebuyers demanded an audit of the builders from whom they had purchased flats but could not hand them over as the funds collected against flats were allegedly diverted to other projects. On September 20, the authority started the process of selecting a private agency for auditing, which was completed last week.

The audit is to be conducted to evaluate 11 points. These include builders’ current financial capacity, funds collected from buyers, land bank and money spent on construction and other purposes, among others.

It will help identify builders who have diverted funds. If the builders are found to be diverting funds, the state government will conduct a forensic audit and book the builders as per law.

Vandana.ramnani@nw18.com
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