Two builders face YEIDA action for diverting Rs 355cr

Greater Noida: Nearly three weeks after the Yamuna Expressway Industrial Development Authority (YEIDA) issued notices to eight builders for allegedly diverting Rs 840 crore meant for completing housing units in its area, the authority has ordered action against at least two builders.
While one of the builders has been directed not to sell any more units in its project, another builder’s temporary completion certificate has been cancelled. Both builders together are alleged to have diverted funds to the tune of Rs 355 crore. The move follows audit of accounts of 28 projects involving 13,000 flats and plots in YEIDA.

YEIDA chairman Prabhat Kumar, who is also the divisional commissioner, on Monday said they would soon issue a notice for cancellation of the project by SDS Infracon Pvt Ltd in Sector 26A of YEIDA. “We had given the builder six months to complete the project after taking nod from the YEIDA board, which has not been done,” said Arun Vir Singh, CEO, YEIDA.

YEIDA officials said since they had not received any suitable explanation to the allegations from the builder who was to deliver 770 flats and 1,454 plots to buyers, it has also been directed not to book, sell or launch any scheme .

Both builders could not be contacted despite repeated attempts

As per the audit report, the builder has failed to develop the sanctioned 770 units in the project. The builder had collected Rs 369.41 crore from the buyers and spent Rs 133.31 crore on the project, leaving a difference of Rs 182.44 crore. The builder has not been able to explain to the YEIDA this difference. The builder has also failed to clear outstanding dues worth Rs 280 crore owed to YEIDA.

“We have decided to take stringent action against Greenbay Infrastructure Pvt Ltd, whose project is located in Sector 22D,” Singh said. “This builder was issued a temporary completion certificate on the condition that infrastructure, including roads, drainage, sewerage, water pipes, electrical, etc be put in place. Two months were given to the builder but they have failed to do so. Hence, the chairman has directed that the temporary completion certificate be cancelled,” Singh said.

Greenbay Infrastructure has allegedly diverted Rs 173 crore. While Rs 170 crore was given as loan to a financial services firm, Rs 3 crore was diverted to another project.