Noida Authority To Hire Consultancy Firm To Monitor NCLT Cases And Recover Dues
The firms can submit their bids by 18 February
The Noida Authority is preparing to hire a consultancy firm to monitor its escrow accounts, review cases under the National Company Law Tribunal (NCLT) and assist with internal coordination.
It has issued a Request for Proposal (RFP) for services and on receiving the bids, it will do technical evaluation. Initially, the company will be hired for one year
The Authority allots land parcels on lease for development under specified agreements. However, several developers have failed to adhere to the terms, delaying projects and defaulting on payments.
To curtail these, the Authority’s move will ensure timely settlement of dues when third-party rights are created through the sale of units, apartments, or plot developments.
The consultant will draft and execute escrow agreements and monitor the funds regularly.
The introduction of escrow accounts is part of a strategy to recover outstanding dues from defaulting developers, who collectively owe the Authority thousands of crores.
The jointly operated accounts will 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 consultant will also play a crucial role in monitoring companies undergoing insolvency.
The Authority needs updates on cases being heard at the NCLT, particularly of firms at risk of insolvency but have not yet entered formal proceedings. Tracking the developments will enable the Authority to take preemptive measures.
For companies already facing insolvency, the consultant will assist in filing claims, coordinate with the Committee of Creditors (CoC), and ensure active participation in the resolution process.
Presently, 17 group housing projects are undergoing NCLT proceedings, making it essential for the Authority to monitor the developments and safeguard its financial interests.