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Housing

GNIDA Audit Exposes Irregularities, Derelictions of Duty, and Outstanding Dues Worth Crores

Strategic Insights

— 1 min read

A Comptroller & Auditor General (CAG) audit has revealed that the Greater Noida Industrial Development Authority (GNIDA) has been plagued by a series of flaws, including the omission of critical safeguards in successive scheme brochures, irregularities in planning, land acquisition, pricing, and allotment, and a failure to uphold the trust of homebuyers. The audit found that 28 of the 34 projects examined had pending dues totaling Rs.2,235 crore, and that GNIDA had extended undue favors to builders by allotting plots to technically unqualified bidders and in spite of defaults by the allottees in earlier schemes.

Key Takeaways:

  • The CAG audit found that key safeguards, such as requiring builders to open escrow accounts, were omitted from successive GNIDA scheme brochures, undermining protections for homebuyers and GNIDA.
  • The omission of these safeguards led to project delays, GNIDA's failure to uphold homebuyers' trust, and its inability to ensure timely possession and execution of sub-leases.
  • As of April 2021, 28 of the 34 projects examined had pending dues totalling Rs.2,235 crore, with large outstanding dues of Rs.10732.44 crore pending against the builders.
  • GNIDA failed to ensure fair competition in evaluation of bids, allotted plots to technically unqualified bidders, and in spite of defaults by the allottees in earlier schemes.
  • The audit found that only 14.52 per cent of total builders/Group housing allotments made during the audit period had been completed.
  • The state government has accepted the CAG report's recommendations, including investigating the nexus between GNIDA officials and builders, and expediting action against officials responsible for framing policies detrimental to the interest of GNIDA, homebuyers, and the government.

Statistics:

  • Rs.2,235 crore: total pending dues of 28 projects examined
  • Rs.10732.44 crore: large outstanding dues pending against builders as of April 2021
  • 28 of 34 projects examined had pending dues
  • Only 14.52 per cent of total builders/Group housing allotments made during the audit period had been completed
  • Rs.19,500 crore: total dues pending as of April 2021 for land premium, lease rent, and interest
  • Rs.13,362 crore: notional losses to the state exchequer due to irregularities

Sources:

  • Comptroller & Auditor General (CAG) report (no date mentioned)
  • Hindustan Times (Aug. 14)
  • Hindustan Times (Aug. 13)

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