Noida Authority hires international agency to audit builders' accounts

An international private agency, Currie & Brown, has been asked to audit accounts of as many as 100 builders who have not cleared their dues to the Noida the authority in Uttar Pradesh

The agency, which will audit 36,000 units in the first phase, will also audit the accounts of those developers who failed to deliver housing units to homebuyers on time

Talking to Moneycontrol, Alok Tandon, CEO, Noida Authority, said the process will complete in 40 to 45 days

He informed that as many as 12-13 builders including Logix, Supertech, Sikka and Aims Gardenia will be audited in the first phase. The authority will reportedly be paying Rs 60 lakh (Rs 10 lakh per team for auditing 6000 units each). 

Tandon was quoted as saying: “Builders have been raising demands for rescheduling of their debt to the authority. To avoid a situation wherein they benefit from relief offered by the government and it is later found that they have misused funds, it is better to get their accounts audited. The results of the audit will enable us to draw a list of builders who will not be eligible for any further relief from the government."

Earlier on September 12, Uttar Pradesh Chief Minister Yogi Adityanath had directed the CEOs of Noida, Greater Noida and Yamuna Expressway authorities to audit builders who have failed to deliver flats to homebuyers.

The directive came in the wake of homebuyers' demanded for audit of the builders from whom they had purchased flats but failed to get the possession. They alleged that the funds collected against their flats were diverted to other projects.

The audit will reportedly evaluate 11 points including builders’ current financial capacity, funds collected from buyers, land bank and money spent on construction and other purposes, among others.