NOIDA: The Noida Authority is planning to hire a consultancy firm to monitor its escrow accounts, reviewing insolvency cases under the National Company Law Tribunal (NCLT), and assisting with internal coordination, among other tasks. The consultant will help execute escrow agreements and provide updates on insolvency proceedings.
The Authority has issued a Request for Proposal (RFP) for consultancy services and interested firms can submit their bids by Feb 18, after which the technical evaluation will take place the following day. Initially, the company will be hired for one year.
The Authority allots land parcels on a lease basis for development under specified agreements. However, several developers have failed to adhere to the terms, delaying project execution and defaulting on land payments.
To curb such defaults, the Authority intends to introduce an escrow mechanism that will ensure timely settlement of dues when third-party rights are created through the sale of units, apartments, or plotted developments. The appointed consultant will assist in drafting and executing escrow agreements while regularly monitoring fund flows.
The introduction of escrow accounts is part of a broader strategy to recover outstanding dues from defaulting developers, who collectively owe the Authority thousands of crores. These jointly operated 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, officials explained.
Apart from overseeing escrow accounts, the consultant will also play a crucial role in monitoring companies 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 Authority will be able to make informed decisions and take preemptive measures where necessary.
For companies already facing insolvency, the consultant will assist in filing claims, coordinating with the Committee of Creditors (CoC), and ensuring active participation in the resolution process. A total of 17 group housing projects in the city are currently undergoing NCLT proceedings, making it essential for the Authority to closely monitor developments and safeguard its financial interests, officials added.
