Audit Reveals Fraudulent Allotment Of 261 Flats In Noida Complex To Mayawati's Brother And His Wife In 2010

In a investigative report by The Indian Express, official records scrutinized have revealed that 261 flats in a Noida apartment complex developed by Logix Infratech Private Ltd were allotted in a fraudulent manner. The beneficiaries of this allotment were the brother and sister-in-law of the former Chief Minister of Uttar Pradesh and BSP leader, Mayawati.

The allotment involved deception and undervaluation, according to a scrutiny of the official records and the audit.

A thorough investigation of the sequence of events that spanned 12 years, starting from the incorporation of Logix Infratech Private Ltd. to its bankruptcy proceedings and a forensics audit in May 2023 corroborates the allegations of irregularities, according to the report.

The official records, coupled with reports investigated and revelations of the same by The Indian Express, outline the series of events that led to the perpetration of this fraud. The timeline of events points to a pattern of wrongdoing that fails to qualify as mere coincidence.

Logix Infratech Private Ltd. was incorporated in 2010, with Mayawati as the Chief Minister, having assumed office in May 2007. The subsequent developments, as revealed by the official documents, are a testament to the underhanded means adopted to benefit those in power.

Within two months, in July 2010, Logix made deals with Anand Kumar and his wife Vichiter Lata, allowing them to purchase approximately 2,00,000 sq feet each in Blossom Greens, a Noida-based project. Anand Kumar paid Rs 2,300 per square foot while his wife paid Rs 2,350 per square foot. The total cost for Anand Kumar's purchase was Rs 46.02 crore, and Rs 46.93 crore for his wife.

Soon after these initial purchases, the Noida Authority leased 1,00,112.19 sq meters or 24.74 acres of land to Logix Infratech for the development of 22 high-rise buildings. This lease was granted in September of 2010 and was authorized by the UP government.

From September 2010 to 2022-23, Logix managed to successfully sell 2,329 of the total 2,538 residential units in Blossom Greens. As of today, the company has delivered ownership of eight towers, accounting for 944 flats of which 848 homeowners have chosen to occupy. Though the civil structure for the remaining 14 towers has been completed, they are not yet ready for handover.

A significant milestone in the project took place on April 4, 2016, when Anand Kumar and Vichiter Lata were both granted ownership of their apartments. Anand Kumar was awarded 135 flats, and his wife received the remaining balance of 126 flats after making an advance payment of Rs 28.24 crore and Rs 28.19 crore, respectively.

On February 15, 2020, Logix Infratech received a notice from construction company Ahluwalia Contracts (India) Ltd demanding unpaid dues of Rs 7.72 crore. This notice was related to the civil and structural works awarded to Ahluwalia Contracts by Logix Infratech for Blossom Greens, which was worth Rs 259.80 crore.

In October 2020, Logix Infratech responded to the notice citing multiple reasons that led to their inability to pay the dues to Ahluwalia Contracts. Some of the key reasons they highlighted were COVID-19, a ban on construction in NCR towards the end of 2019, and non-availability of skilled labour.

On September 29, 2022, the NCLT ordered bankruptcy proceedings against Logix Infratech. This provided a chance for the company to go through the Corporate Insolvency Resolution Process (CIRP), which served as a recovery mechanism for all whom Logix owed money.

After appointing an Interim Resolution Professional as per insolvency norms, an audit of Logix Infratech's books was ordered. As per the Transaction Audit Report submitted to the IRP in May 2023 and reviewed by The Indian Express, the units sold to both Anand Kumar and Vichiter Lata were deemed "fraudulent" as they were "undervalued."

The audit conducted on the bankruptcy proceedings filed by two parties, which amount to Rs 96.64 crore, has revealed a series of flagged irregularities. The initial billing of Anand Kumar for the same property is Rs 2,300 per square foot, which is significantly lesser than the average net rate of Rs 4,350.85 used in transactions with other home buyers in the financial year of 2016-17. The audit report has stated that such transactions are considered "undervalued" under Section 45 of the Insolvency and Bankruptcy Act 2016.

One of the glaring irregularities that have been flagged by the audit report was the possession by Anand Kumar of 36 units, which were already allocated to other parties. This raised suspicion about any other possible misrepresentation or deception involved during the allotment process.

Furthermore, the audit report has questioned the authenticity of the transaction since vouchers that prove Anand Kumar's payment of Rs 28.24 crore were recorded under the head "Advance from Customers" instead of as an investment. The report found that, although bank receipts and bank statements confirm the receipt of Rs 27.60 crore, the funds were transferred to related parties.

A report has flagged similar irregularities in the transactions of Anand Kumar's wife, Vichiter Lata. The allegations indicate undervalued prices, even as 24 out of the 125 units given to her were already assigned to other individuals. The report also highlights the transfer of Rs 28.85 crore of her payment to related parties without any explanation. The report classifies this transaction as fraudulent.

The Logix Group, established in 1997, owns several companies and has built over 4 million square feet of IT spaces. A 2021 CAG report shows that the Noida Authority allotted 22% of commercial plots to the Logix Group during 2005-2018. Outstanding dues owed by the Group to the authority stood at Rs 5,839.96 crore as of March 31, 2020.