K-RERA orders forensic audit of Mantri Energia project

BENGALURU: The Karnataka Real Estate Regulatory Authority of India (K-RERA) recently ordered a forensic audit into the account books of Mantri Technology Constellation Private Limited (now known as Buoyant Technology Consellations Pvt Ltd) in connection with its ‘Mantri Manyata Energia’ project at Rachenahalli village in K R Puram Hobli.

A forensic audit, which involves intense scrutiny of a company’s accounts to track its money trail, is done in the rarest of rare cases. The order, passed on November 9, has just been made public. K-RERA also appointed CAs, JAA & Associates, to conduct the audit under Section 35 of the Act with immediate effect. The complainants (home buyers) have been directed to bear the costs towards the audit by depositing funds with the authority, it said.

RERA Chairman H C Kishore Chandra, Member Neelamani N Raju and former member D Vishnuaradhana Reddy had visited the project in September 2021 to ascertain the reality of the project. Chandra told TNIE, “This kind of an audit is ordered very rarely.”

The buyers wanted to verify if the real estate promoter has invested the huge amount collected from them towards the construction of their flats or mismanaged the funds for other purposes.The complainants allege that only 3 per cent of the work has been completed, but the builder has collected Rs 75.17 crore from the buyers, out of Rs 475.92 crore required for the project.

N Bhagyalakshmi, Promoter Member of the Forum for People’s Collective Efforts, which is at the forefront of the fight for rights of home buyers told TNIE, “It is a battle fought for four long years by buyers through Lawman and Associates. Each of the over 100 buyers who have complained against the concern has invested an average of Rs 1.2 crore in the project. Only a skeletal structure is in place. They have neither got their house nor any refund.”

The National Company Law Tribunal had suppended the Board of the company in June this year and appointed retired Karnataka High Court judge Justice Anand Byrareddy as administrator.