Fight for RERA seeks forensic audit of all real estate projects


FightforRERA, the umbrella body of home buyers that played quite an instrumental role in mobilising support for enactment of the real estate law RERA, demanded on Thursday that the government should order forensic audit of all builders to find out how much of the homebuyers' money they have diverted in each project.


"Our apprehension and allegation proving true, we appeal to @narendramodi JI, @PMOIndia to order forensic audit of all builders and if found guilty confiscate their assets including personal and utilise for completion of projects," tweeted FightforRERA.


The demand comes a day after it was brought to the notice of the apex court that the builder Amrapali Group had diverted funds collected from the homebuyers. "From day one we have been demanding the need to verify how much money paid by the home buyers have actually been spent in carrying out construction. In almost all cases you will find builders have diverted most of the people's money for starting new projects and for new ventures in other areas," said Abhay Upadhyay of FightforRERA.


In fact, considering this has been largely the practice across the country, the real estate regulation law, RERA, clearly says that 70% of the amount paid by the home buyers will have to be utilised for the specific project and there will be a separate escrow account for each project. This norm applies to all projects that commenced after the RERA was enacted.


"So, most of the defaulter builders are hardly worried. Once the government starts crack down on them, they will be forced to deliver and meet the extended deadlines," Upadhyay said.

Written by The Realty Paper

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