Slapped with notices for ‘diverting’ Rs 840 crore in Greater Noida, builders cry foul, say will move court

GREATER NOIDA: The Yamuna Expressway Industrial Development Authority issued notices to eight builders on Tuesday for allegedly diverting Rs 840 crore supposed for completing flats, a few days after a similar move via the Noida Authority towards 11 builders.
YEIDA has directed the 8 builders to open escrow accounts and deposit the amounts allegedly diverted inside a month, failing which it has threatened to file police proceedings towards them. The notices drew a scathing reaction from the builders, who termed the allegations unfounded and malicious.

Arun Vir Singh, the CEO of YEIDA, said, “These 8 builders come with Logix Buildstate Pvt Ltd (Rs 37.84 crore), Greenbay Infrastructure Pvt Ltd (Rs 173.10 crore), Oasis Realtech Pvt Ltd (Rs 8 crore), Sunworld City Pvt Ltd (Rs 27.55 crore), SDS Infracon Pvt Ltd (Rs 182.44 crore), Three C Homes Pvt Ltd (Rs 27.93 crore), Supertech Township Projects Ltd (Rs 262.82 crore) and ATS Realty Pvt Ltd (Rs 120.75 crore). According to the document, there's a difference between finances collected via the builders and what was spent on the respective tasks.”

He added, “Action will be taken in the hobby of homebuyers. These builders have been to hand over about 8,000 housing units, including flats and plots, to the buyers. The builders were given 30 days to open escrow accounts with the Authority or face motion.”

YEIDA also directed builders of 28 tasks to pay up Rs three,500 crore they owe to it inside the same time period or face recovery proceedings.

Singh said YEIDA had shaped a five-member committee, headed via further CEO Amarnath Upadhyay, in November last year to audit the builders’ accounts, following a directive from leader minister Yogi Aditya Nath. “The committee’s findings and final document are based on main points similar to money collected for a housing undertaking from buyers, banks and different establishments, money spent on land or construction and what quantity of money was used to finish a undertaking via the respective builders,” the CEO said.

Major builders likes ATS, Logix and Supertech led the refrain of protest towards the notices. “We are actually left and not using a option but to file a defamation go well with towards such high-handedness to save lots of our reputation,” said CMD of ATS Getamber Anand, who could also be chairman of realtors’ affiliation Credai.

A spokesperson for the Logix staff said since YEIDA could not give ownership of land even 8 years after acquire, the company had sought to go back 130 acres out of 200 acres.

“YEIDA deducted Rs 42 crore — 15% of the most important amount of around Rs 280 crore — which was paid for 130 acres. It refused to refund the stamp duty on returned land which is around Rs 17 crore,” the spokesperson said, adding the company was but to receive even the 70 acres. On the basis of the allotment, Logix had sold plots and collected money. In 2017, the spokesperson said they advertised in newspapers and requested buyers to take refund with five% hobby. “There is no buyer in the undertaking these days,” the spokesperson added.

“How can YEIDA say we diverted finances?”

Anand said ahead of stating them responsible of diversion of finances, the authority didn't give them a hearing. He said construction of the ATS undertaking is already complete. “Cases on calculation of land dues are in court. Developers are being requested to pay further farmers’ repayment at the price of around 64% of the unique price. These issues will have to be resolved first,” he said.

Supertech CMD RK Arora said that out of 100 acres land allotted to his company, best 50 acres had been passed over thus far.

In the meeting with the auditors, he said the company had showed it had spent much more than what it had gained from buyers. But it needed to complete the undertaking, and had to make use of money from its personal assets in addition to borrowed finances to take action, Arora said. It has applied for of completion certificates for the first phase, Arora said.

The different builders could not be contacted for a comment.

Slapped with notices for ‘diverting’ Rs 840 crore in Greater Noida, builders cry foul, say will move court Slapped with notices for ‘diverting’ Rs 840 crore in Greater Noida, builders cry foul, say will move court Reviewed by kailash soni on February 14, 2018 Rating: 5
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