Ghaziabad Development Authority is planning to take stringent action against the builders who are yet to offer possession of flats according to the schedule. The authority has listed nearly 18 real estate developers in Ghaziabad who are running behind the set time for delivering the housing projects. GDA [Ghaziabad Development Authority] will also carry out an audit to check if the builders have used the money collected from the home buyers for other purposes that might be causing a delay in project completion.
Prior to this, the Ghaziabad Development Authority prepared a list of 115 developers, whose township projects are currently underway in the city and have put them into three categories that are A, B and C respectively. This segregation of developers has been made according to their work progress.
The Ghaziabad Development Authority has kept 58 builders are kept in category A, 39 in Category B and 18 in category C. According to a leading real estate portal, more than 28,000 flats are expected to be delivered in Ghaziabad in the year 2019 which is the highest number of possession offered till now.
The developers listed in category ‘C’ are likely to lose their license if the auditors find them guilty for using the money collected from the home buyers for different purpose inspite of using this fund for the project development.
According to the Real Estate law, the builder/developer is required to keep the money collected from the home buyers in a separate account which is termed as an Escrow account. The developer/builder can use money from this account only for the purpose of development in the same project. The law also states that the developer/builder is not allowed to spend more than 70 percent of the money available in the account and failure to maintain this ration will lead to a monetary penalty to him/her.
Recently, the Supreme Court has formed a team of forensic auditors in the case of insolvent Amrapali group, Jaypee Infratech and one more developer who are facing similar charges.