RERA to audit 13 Amrapali projects with 35,000 homes

RERA to audit 13 Amrapali projects with 35,000 homes
18/09/2017 , by , in News/Views

The UP Real Estate Regulatory Authority (Rera) has ordered a probe to collect financial details and construction status of 13 Amrapali projects in Noida and Greater Noida, which collectively comprise around 35,000 flats. Land for all these projects was allotted in 2009 and ’10.

Debashish Panda, chief executive officer (CEO) of the Greater Noida Industrial Development Authority (GNIDA), has been named the investigating officer for what will essentially be an audit of these projects. The direction came after GNIDA told the state government the real estate company was reluctant to submit financial records and information about its ongoing projects in the twin cities. Amrapali’s Silicon City in Noida is already facing insolvency proceedings after Bank of Baroda filed a plea at the National Company Law Tribunal.

According to an office memorandum issued by Rera chairperson Mukul Singhal for the investigation, the Amrapali group was allotted seven plots in Noida in 2009-10 and six plots in Greater Noida. The company was to build 12,000 flats in Noida and 23,000 residential units in Greater Noida. But no completion certificate has so far been issued for any of these projects.

Amrapali owes Noida Authority Rs 1,200 crore and the GNIDA Rs 2,000 crore, officials said.

The information the audit seeks will include floor-wise details of flats in each tower of a residential project, the number of flats sold, money collected from homebuyers, names and addresses of the investors and status reports (both tower-wise and project-wise).

The company will also have to provide a statement of funds still required to complete construction of each project, month-wise comparative account statements of money spent and money received from homebuyers, bank statements showing availability of funds, balance sheets of last five years, details of land bank and net worth.

Panda said he had yet to receive the order but was expecting it. “We are already preparing for the investigation,” he said.

“Both the Noida and Greater Noida authorities are in the process of hiring a consultant that will collect information from the builder. Amrapali group is a big defaulter and there is an urgent need to conduct a physical and financial audit of the company to find out how the firm intends to complete its projects, deliver homes to buyers and how it intends to pay dues,” he added.

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