The Tamil Nadu Real Estate Regulatory Authority has engaged a chartered accountant to scrutinise the bank account of a delayed housing project to verify utilisation of homebuyers’ payment and submit a report in a month.
The first-of-its-kind direction follows a complaint by a homebuyers association, demanding a forensic audit to find out if funds meant for the housing project on Chennai’s outskirts were diverted. The complainant association will bear the CA’s Rs 1 lakh fee.
In its order on a petition from Padmalaya Apartments Buyers’ Association over the project developed by Real Value Promoters (P) Ltd at Pudupakkam on Vandalur-Kelambakkam Road, TNRERA said there were variations in the financial progress stated by the two parties. “Therefore, it is necessary to make an independent assessment of the utilisation of the amounts paid by the allottees. The authority engages a chartered accountant to scrutinise the project account and furnish a report with specific reference to utilisation of amounts paid by the allottees,” it said.
The association, with over 100 members, said despite 70%-80% of the cost being paid, construction didn’t reach 40% in four blocks and was yet to begin in two other blocks, and that the funds could have been diverted. The promoter said it received Rs 53 crore from buyers and spent Rs 56 crore on construction. Stating that details of expenses were given to the association in 2019, it said there was no need for a forensic audit.
The TNRERA said the promoter should produce a CA-certified statement of accounts that will be verified to see if the funds for the project were used for it. The promoter didn’t file the Annual Report on Statement of Accounts under the Tamil Nadu Real Estate Regulatory Authority (General) Regulations, 2018 for 2018-19, it said.
