FIR by Maharashtra RERA Against Builder after forensic audit for Non Compliance and Misappropriation U/s 4,406,409,420

FIR by Maharashtra RERA Against Builder after forensic audit for Non Compliance and Misappropriation.

On the Date 23/02/2024 , On the Directions of the Maharashtra RERA, the administrative officer Lodged the FIR u/s 34,406,409,420 against the

1. PARAMVIR DEVELOPERS LLP
2. KUMAR KANAYALAL MORDANI (Director) and
3. KANAYALAL MORDANI (Director)

Timeline of the Matter

1. On Date 11/01/2023 Maharashtra Real Estate Regulatory Authority (Maharera) sent a letter to PARAMVIR DEVELOPERS LLP dated regarding non compliance of its rules.
2. Again On Date 27/02/2023 another letter was sent to Builder dated regarding non compliance.
3. No reply received from the Builder.
4. Due to No Reply by the Builder,  On Date 14/03/2023 ,a company named Neelam Arch Consultant was appointed as an investigator for the Builder's Project High street (Maharera Registration No. 51800005582)
5. The investigator was not allowed access to the site by the Builder.
6.  On the Intervention of Maharera only the Investigator was given access to the said site
7. After studying the site the Investigator submitted a report to Maharera on 23/03/2023.
8. On Date 24/03/2023, Maharera sent a letter to Builder regarding non-filing of any return but again the builder did not respond.
9. On Date 02/05/23, Maharera decided to appoint M/s BDO India LLP to conduct a forensic audit of Builder's high street project .
10. The company B.D.O. India. LLP submitted the report in this regard to Maharera on 25/08/2023.

The Forensic Audit Report revealed the Followings:-

• The Builder collected a total of Rs.19.82 crores from the customers and deposited the entire amount in the current account of his firm and not in the Separate RERA bank as mandated U/s section 4(2)(l)(d).
• Out of Total Rs.19.82 crores received by the developer from the customers, an amount of Rs.11.61 crores is given as Interest free loan and advance to other Sister companies/firms without any agreement and document.
• The Builder raised a loan of Rs. 202.33 crores  from Banks and Financial Institutions for the said project.

• Out of the total loan amount raised, Rs. 66.43 crores is given as Interest free loan and advance to other Sister companies/firms without any agreement and document.

•  A total of Rs 109.13 crore was repaid to the financial institutions even before completing the project.

• There by The Builder misappropriated a total amount of Rs 78.04 crore.
• Only an amount of Rs. 6.40 crores was used under the project expenses in the ledger books.

• The developer had taken bookings for the project from 34 customers. On verification of the customer ledger and sales ledger from the developer, it was seen that the booking amount of five customers was 220 crores, but due to cancellation of their bookings, the amount refunded to them was only Rs. 2.83 crores. This raised doubts about the refund amount.

• Since 2017 the developer did not submitted  any quarterly report.

• The developer constructed a thirteen storied RCC against a permission of a six storied building. 

• The developer only completed 30 % of the project by December 2022.

Thus Resulting in the FIR against the Builders and its Directors.