Noida Authority plans forensic audit of all defaulting projects

Noida Authority plans forensic audit of all defaulting projects
12/08/2017 , by , in News/Views

The Noida Authority has demanded the Uttar Pradesh government to have a forensic audit on the fund flow of all the defaulting builders with projects in Noida.

A forensic audit is an examination and evaluation of a firm’s or individual’s financial information for use as evidence in court. It is conducted in order to prosecute a party for fraud, embezzlement or other financial claims.

Recently, National Company Law Tribunal (NCLT) having admitted pleas of insolvency proceedings by several banks who wanted to recover their dues from the builders.

According to Amit Mohan Prasad, CEO, Noida Authority, a high-level meeting has also been scheduled on August 14 in Lucknow with senior officials in the state government to decide on the next step in the matter. “We have ongoing projects of nearly 36 builders in our area,” said Prasad. “Currently, we are looking at an outstanding amount of nearly Rs 10,000 crore owed to us by the realtors,” he said. “Amrapali group is a big defaulter and owes us nearly Rs 1,200 crore. We have asked the state government to focus on the developers as thousands of homebuyers are waiting for possession of homes,” he said. “Jaypee Infratech is another defaulter with thousands of promised residential units yet to be delivered, though they have paid the Yamuna Authority Rs 400 crore recently,” he said. “I have also called for a meeting with 36 builders on August 16 and 18,” Prasad added.

Getamber Anand, CREDAI national president, who is also CMD, ATS Infrastructure Ltd, on being quizzed about the CEO’s move on proposed forensic audit said: “Noida Authority should play the role of a monitoring agency rather than one of police. The need of the hour is for hand-holding of builders with held-up projects. The Authority needs to work together with the builders rather than against each other and help the builders in delivering flats to homebuyers. If the authority supports the builders, we can address the prevailing issues together and deliver flats to buyers.”

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