Yamuna Expressway Authority To Lodge FIR, Sell Assets Of Builders For Fund Diversion
In an audit of 28 builder accounts by the Yamuna Expressway Industrial Development Authority (Yeida), two parties have been found guilty of diverting funds collected form homebuyers. Following the directive of Uttar Pradesh Chief Minister Yogi Adityanath, the Yeida has set up a panel to examine accounts of these developers who were not able to deliver projects within the promised schedules. The two developers who have been found to be diverting funds are SDS Infracon and Green Bay Infrastructure.
The development body on May 7 said it would file first information report against the two companies — this is the first time the authority is going for such a move. On a day when the Yeida also presented its Rs 3,879-crore Budget for the financial year 2018-19, it also decided to sell the assets of two realtors to recover dues. This is also for the first time that developers’ assets will be sold by the Yeida to make recovery.
Between 2010 and 2011, the Yeida had allotted 124 acre to SDS Infracon and 100 acre to Green bay for plot-based housing projects.
While SDS Infracon is accused of diverting Rs 182.44 crore it collected from homebuyers, Green Bay misused Rs 173.10 crore collected from the same source.
Repeated notices were sent by the Yeida to the two builders to prove their innocence, which they failed to do.
It must be noted here that the panel in its report had said eight of the 28 builders had diverted funds. However, six builders were able to prove in time that they did not misuse homebuyers’ money.
It is worth mentioning here that the Real Estate (Regulation & Development) Act, 2016, mandates that developers use the money collected for housing projects only for that purpose alone. It is precisely for that reason that developers are mandated to put the money so collected in an escrow account. Under various provisions of the law, strict penalties have been put in place to punish offenders.