Audits reveal Greater Noida builders diverted homebuyers' money to buy expensive cars


At least five realtors who have their group housing projects in various stages of development in the Greater Noida area of the National Capital Region have been found to have used the money collected from homebuyers to buy expensive luxury cars. This is one of the findings of the first audit, which scanned 25 real estate companies in the city, officials of the Greater Noida Industrial Development Authority(GNIDA) said. Another 25 are being currently audited and a composite report will be sent to the state government.


The audits have been commissioned to find out the reasons for the delay in handover of flats to homebuyers.


Refusing to divulge any more details, GNIDA officials said details would be made public once the report is finalised. In the Greater Noida, about 1.33 lakh flats are stuck across 104 housing projects.


GNIDA additional CEO BK Tripathi said, “Some details have come to light from the audit report of the first 25 builders scrutinized. I will share the facts regarding each builder once we have a final audit report in the next few days. If builders have used the money deposited by homebuyers wrongly or for their own personal use and have thus been unable to deliver flats, action will be taken.”


On January 15, chief secretary Rajive Kumar had said “criminal or civil action is on the cards for builders on a case-to-case basis depending on the facts and findings of the audit reports in the three areas of Noida, Greater Noida and Yamuna Expressway”.


A financial and physical audit of builder projects in Noida and Greater Noida has been carried out by international firm Currie & Brown. So far, a total of 62 builders’ accounts have been audited in the three areas in the first phase of the exercise.

Written by The Realty Paper

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