Noida: 2 builders arrested for not paying labour cess, RERA dues

Directors of two private real estate firms were arrested on Thursday for non-payment of nearly Rs 4 crore of labour cess dues and those towards the Real Estate Regulatory Authority (RERA), the Gautam Buddh Nagar administration said.

The directors of IVR Prime IT Sez firm and PME Power Solution India were arrested in the afternoon by revenue officials in Dadri and Sadar tehsils of the district, the administration said.

"Recovery certificate (RC) was issued against IVR Prime IT Sez firm by RERA for recovery of outstanding dues worth Rs 3.04 crore. Based on the RC, action was taken and the firm's director was arrested after it failed to remit the dues," Dadri Sub-Divisional Magistrate (SDM) Anjani Kamar Singh said.

Director of PME Power Solution India was arrested by the revenue officials for not paying Rs 80.25 lakh in labour cess, SDM Sadar Rajpal Singh said.

According to procedure, the firms were served notices about 15 days ago, asking them to clear their dues or face action, the officials said.

"The action is part of a special drive initiated by district magistrate B N Singh to recover all pending dues," Singh said.

According to officials, when RCs are issued against pending dues to any group or entity, it is given a 15-day notice to clear the dues. Action is initiated only after 15 days.

The RCs are first sent to the district administration, which is empowered by the law to take several actions, including the power to attach accounts and even the properties, to make the recovery from any defaulter, the officials said.