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UP RERA issued show cause notices to 12 builders for diverting Rs. 3,000-Crore funds based on report submitted by Currie & Brown

The Uttar Pradesh Real Estate Regulatory Authority or UP RERA has issued show cause notices to almost a dozen real estate developers who have allegedly diverted about Rs 3000 crore to Rs 4000 crore worth of home buyers’ money and delayed completion of housing projects, sources said.

“We are in the process of issuing show cause notices. We have already sent out noticed to four to five builders, the remaining notices are expected to be issued in the next one or two days. We would give the developers 15 days’ time to file their reply or deposit the amount in the concerned escrow account,” UP-Rera member Balwinder Kumar told Moneycontrol.

“We will not disclose the names of the developers unless we have examined their notices. Builders have claimed there has not been any diversion. On the other hand the audit report has said that there has been diversion of substantial amount amounting to almost Rs 3,000-4,000 crore,” sources said.

The show cause notices have been issued to real estate developers following a report submitted by forensic auditor Currie and Brown (C&B) that had investigated over 90 developers over the last three months for financial misappropriation. The auditor had submitted its report last month.

UP-RERA would also be holding a meeting next week to decide on deregistering the projects of builders who have defaulted or diverted money. Decisions would be taken on either taking over the land or appointing third party developers to complete construction work after their responses have been received, sources said.

“We had a marathon meeting with Currie and Brown on Wednesday (November 21)  and have directed them to hand over the list of projects that can be deregistered or surrendered to Noida or Greater Noida Authority or if there is scope for RWAs or third party developers completing them. They will submit a report within three to four days. RERA Authority will meet on next Wednesday and take a final decision on the issue of deregistration of certain projects,” Kumar added.

Source:www.moneycontrol.com/news/business/real-estate/up-rera-issues-show-cause-notices-to-12-builders-for-diverting-rs-3000-crore-funds-3207771.html

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