Ed Asks Govt For ’17 Audit Report On Orris Project, Real Estate News, ET RealEstate

March 23, 2024

NOIDA: Enforcement Directorate (ED) wrote to Yamuna Expressway Authority (YEIDA), seeking details of its audit that pointed out discrepancies by Orris Group in its Greenbay Golf Village housing project off Yamuna Expressway.

ED also asked for any details that YEIDA might have shared with police or any other investigating agency for other projects of the company, such as Greenopolis (Gurgaon), as well as information on Orris Land and Housing Private Ltd, a group company.

“It is to inform that this office is conducting certain inquiries in the case of the Orris Group. It was gathered that the YEIDA has audited the Greenbay project of Orris Group. Regarding the land allotment in Sector 22D, YEIDA has found financial discrepancies. It is further gathered that YEIDA has filed the information with the police authority,” read the letter by Pemmaiah KD, the ED deputy director (Lucknow zone).

On June 27, 2018, an FIR was registered against Greenbay Infrastructure — an Orris company constructing the project — for cheating, forgery, criminal breach of trust and under relevant provisions of the Companies Act after YEIDA accused it of diverting funds acquired from homebuyers for other projects.

The developer was allotted 100 acres in Sector 22D to build a township with 620 flats and 684 plots. The land premium then was Rs 192 crore.

Orris, however, started defaulting on payment of dues soon after. At Rs 455 crore, Orris is currently one of the biggest defaulters of the Yamuna Expressway Authority.

As the dues kept mounting, YEIDA formed an audit committee to examine the developer’s financial dealings.

The committee probe — carried out through Dec 2018 — found that of Rs 323.3 crore that Orris had collected from Greenbay buyers, Rs 173.1 crore was diverted elsewhere.

The committee submitted its report, recommending police action against the developer for alleged financial irregularities. The FIR was lodged at Kasna police station.

In Nov 2019, police submitted its final report, saying no legal action was required against Orris. YEIDA responded with a protest application at the court of the additional chief judicial magistrate (third).

The court accepted the police report, which said the builder was unable to clear the Authority’s dues because parts of the land allotted to it were still with farmers. It also cited stay orders by Allahabad High Court.

Authority officials said they had challenged the police report before the district and sessions judge. The case is being heard.

The group’s financial transactions have, meanwhile, drawn attention of the income-tax department as well. In Sept last year, I-T searches were carried out on premises linked to the developer — at least 10 offices and project sites — in Noida and Gurgaon over suspected tax evasion.

This time, Orris was accused of diverting funds to projects in Dubai.

Amit Gupta, the Orris managing director, said they had settled dues of Rs 173 crore with YEIDA.

“When the court has already accepted a police report saying no legal action is needed against us, I don’t understand why there should be a case of financial irregularity,” he added.

  • Published On Mar 23, 2024 at 08:47 AM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRealty App

  • Get Realtime updates
  • Save your favourite articles

Scan to download App

Source link

Abhay Singh

Web Developer