by THO
NOIDA: The Noida authority will rope in an expert agency to help it recover and manage its financial dues owed by the realty firms, officials said on Sunday.
The move came as the authority realised that it struggles to recover its dues from the defaulter realtors.
“The new agency to be finalised through tendering process will be tasked with key works including monitoring escrow accounts (temporary accounts holding funds or assets until certain conditions are met), reviewing insolvency cases under the National Company Law Tribunal, and assisting with internal coordination,” said a Noida authority official, adding that the initiative aims to boost financial oversight, streamline the recovery of land dues, and enhance regulatory compliance among developers facing financial distress.
Authority officials said that it allots land parcels on a lease basis for development under specified agreements. But many developers failed to adhere to the terms, delaying project execution and defaulting on land payments.
“To contain this practice of defaults, the authority plans to introduce an escrow mechanism that will ensure timely settlement of dues when third-party rights are created through sale of units, apartments, or plotted developments. The appointed agency will assist in drafting and executing escrow agreements, regularly monitoring fund flows,” the official cited above added.
These jointly operated escrow accounts will serve as a safeguard against the misuse of buyer funds, preventing developers from diverting resources to other projects instead of settling their financial obligations with the authority.
The expert financial agency will also play a crucial role in monitoring firms undergoing insolvency proceedings.
The authority requires real-time updates on cases being heard at the NCLT, particularly for firms that are at risk of insolvency but have not yet entered formal proceedings. By tracking these developments, the agency will enable the authority to make informed decisions and take pre-emptive measures where necessary.
For firms already facing insolvency, the agency will assist in filing claims, coordinating with the Committee of Creditors (CoC), and ensuring active participation in the resolution process.
“To formalise the engagement, the Noida authority has issued a Request for Proposal (RFP) for consultancy services. Interested firms can submit their bids by February 18, after which the technical evaluation will take place the following day. Initially, the company will be hired for one year,” said an official.
