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Authorities In Noida Go After Erring Builders; Notices To 12 For Fund Diversion

Authorities In Noida Go After Erring Builders; Notices To 12 For Fund Diversion

Authorities In Noida Go After Erring Builders; Notices To 12 For Fund Diversion
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After repeated warnings to come clean, authorities in Noida are going to launch action against real estate developers occupied in unlawful activities. While the stamps and registration department in Noida is going to lodge FIRs against three developers next week for granting possession of about 600 units without registration, the Noida Bench of the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has served a show-cause notice to as many as 12 builders for diversion of homebuyers’ money.

Among the developers that gave possession of units in their projects without paying stamp duty and registration charges are IVRCL infrastructure and Projects, Apex Dream Homes and GS Promoters. Providing possession of units without registration is violation of Section 17 of the Registration Act. More developers in the city may meet the same fate if they are found giving possession without registering the units.

The UP-RERA, on the other hand, sent show-cause notices to 12 Noida builders on November 21 after a forensic audit of 96 realtors revealed that they have used the money meant for completing housing projects for other purposes.

Incidentally, embattled Noida-based realtor Amrapali Group is being probed for siphoning off funds after the Supreme Court ordered an inquiry.

While developers might lose their registration if case the authority does not find their responses satisfactory in some cases, residents welfare associations may be asked to complete pending projects in other cases where projects are half complete.

Last Updated: Tue Nov 27 2018

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