Project Audit UP realty regulator slaps de-registration on Luckow projects over potential Rs 600-crore scam
New Delhi: The Uttar Pradesh Real Estate Regulatory Authority (RERA) may conduct a deeper audit on developer Ansal API’s projects after a preliminary exercise by consultant Currie & Brown found potential diversion of Rs 600 crore from the Lucknow township project, chairman of the watchdog, Rajive Kumar, told ET.
“We have issued notices for de-registration of Ansal’s projects that have been constructed at its Lucknow township after conducting a basic audit,” said Kumar, who has served as the UP chief secretary. “We are awaiting a reply from them and will consider future course of action after that.”
Kumar said options before the regulator included a more detailed forensic audit of the Lucknow township as well as audit of other Ansal projects in the national capital region (NCR) such as in Greater Noida.
“There are several complaints against Ansal projects,” Kumar said. There were at least half-a-dozen more developers in the NCR who had a similar or worse record of customer complaints, he said.
If the scam is established, the options left to the Ansals would include completing the projects by infusing funds into the company and paying the customers the interest amount that has accumulated due to delay in delivering the projects. If the developer did not to comply, the authority could initiate parallel civil and criminal proceedings, Kumar told ET.
The developers who have come under the RERA scanner includes Primrose Infratech, MSA Developer and Greenbay Infrastructure.
The UP realty monitor is dealing with the highest number of cases in the country with almost 12,000 customer complaints placed before it. Maharashtra comes a close second, according to Kumar. The regulator has a mandate to adjudicate and resolve customer complaints as well as take steps for the development of the real estate sector in every state.
Kumar said he would present a white paper to the chief minister’s office in two months, outlining a roadmap for land acquisition and development in the state.