Noida administration ask banks to verify legality of the project before financing

NEW DELHI: Noida administration has asked the banks to monitor builders who advertise mentioning approval of bank.

“This needs to be monitored by banks and ensure that nobody is using their names and credibility, illegally, to give false sense of financial security to the prospective buyers. It is stressed that legal activity should be supported within framework of law and illegal activities should be dealt with in the strictest possible manner,” said the district administration.

The District Level Consultative Committee (DLCC) meeting of the June quarter for the Gautam Budh Nagar District was held with the representative of RBI on Monday.

The Committee headed by District Magistrate decided to direct the banks to verify the legality of the project before financing them.

“As per law, builders/colonizers are obligated to take permission from Noida/Greater Noida/Yamuna authority in notified area. Such projects which do not have necessary permission or such projects which are sold on false promises, should not qualify for banks approval for financing,” the committee said.

The committee has also said that sanctioning authority shall be held accountable for all such financial disbursements made in such cases.

“All NBFCs are also directed to follow these guidelines and violation, if any, shall be reported to RBI and accountability shall be fixed thereof,” it said.

DM, also instructed to all the banks that they should actively involve themselves in all the government sponsored schemes and achieve the allotted targets so that more and more employment opportunities are created.