Dedicated locality research platform
Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
An independent audit report has unveiled claims of potential malfeasance in the allotment process of the Blossom Greens project by real estate firm, Logix Infratech. The audit purports that Anand Kumar, brother of the former Chief Minister of Uttar Pradesh and BSP supremo, Mayawati, along with his wife, Vichiter Lata, were unfairly allocated 261 apartments in the residential condominium complex located in Noida's Sector 143.
In a close examination of Logix Infratech's financial conduct, a private audit firm, appointed by the Interim Resolution Professional (IRP) under the auspices of the National Company Law Tribunal (NCLT), unveiled the contentious transactions. The firm was entrusted with this task after Logix Infratech's insolvency filing on September 29, 2022, and submitted its findings to the IRP this past May.
The report accuses Logix Infratech of fraudulent transactions under Section 66 of the Insolvency and Bankruptcy Code, 2016. According to the audit, Anand Kumar and Vichiter Lata were allocated condominium units at significantly deflated rates. Anand Kumar acquired 2,00,130 square feet of space at INR 2,300 per square foot, while Vichiter Lata obtained 1,99,735 square feet at INR 2,350 per square foot. However, the report claims that the average net rate for the general public during the 2016-17 allotments was INR 4,350 per square foot, a staggering 46% above what Anand Kumar paid.
Further allegations surfaced around the allotment of certain units already in the possession of third parties and on floors not stipulated in the original agreement between Anand Kumar and Logix Infratech. This discrepancy, combined with the classification of funds as 'Advance from Customers' rather than investment, raises concerns about the nature of these transactions.
In addition, Vichiter Lata, despite being treated as a regular allottee, received units reportedly already in others' possession. According to the report, this inconsistency, along with evidence of reallocation to other buyers, could suggest irregularities in the allotment process, possibly implying fraudulent transactions.
Anand Kumar and Logix Group have both rebutted the audit report's allegations. Kumar condemned the media's role, terming the entire issue a fabrication. Logix Group countered the audit's findings by stating that no favours were gained by the group and defended the pricing discrepancy, attributing it to a bulk sale discount.
In conclusion, this case, currently under investigation by the authorities, has brought to the fore the complex challenges associated with managing large-scale real estate projects and the potential for fraud. As we wait for further developments, the audit's allegations underscore the need for transparency and integrity in the industry. How this case is resolved could set a precedent for future dealings within the sector, making it a pivotal matter to monitor.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
