Grant Thornton accuses 3C Group of diverting funds

MUMBAI: Leading accounting firm Grant Thornton has accused the promoters of Noida-based real estate developer 3C Group of diverting customer advances in Boulevard Projects Private Limited (BPPL), a special purpose vehicle for Delhi One, to various group companies. These group firms, in turn, reportedly used the proceeds to purchase office and retail real estate space in the same project.

BPPL’s bankruptcy resolution professional (RP), Amit Agarwal, had appointed Grant Thornton to conduct a fact-finding review of select related-party transactions. BPPL is a wholly-owned subsidiary of 3C Infra Project Limited, which is the flagship holding company for the 3C Group. Delhi One project is a leafy commercial-cum-residential project spread over 34,996 square meters in Noida that was auctioned under the bankruptcy code by the lenders. In the resolution of real estate companies under the bankruptcy code, customers are treated on a par with the financial lenders and, therefore, are also constituents of the Committee of Creditors (CoC).

“The money collected by BPPL from its customers as advances was transferred to 3C Universal Developers and thereafter to 3C Hospitality Ventures by using related parties, namely Opulent Buildcon, 3C Projects, 3C Infra and Vistar Construction,” said the Grant Thornton report. “It is pertinent to note that all of these entities were forming part of the 3C Group, controlled by common directors.”


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