Noida Authority to Appoint Private Consultant for Overseeing NCLT Cases and Land Payments

NOIDA: The Noida Authority is set to enlist the services of a private consultancy firm to oversee its escrow accounts, track insolvency cases under the National Company Law Tribunal (NCLT), and enhance internal coordination, among other critical functions.

The selected consultant will play a key role in implementing escrow agreements and providing timely updates on ongoing insolvency proceedings.

To initiate this process, the Authority has released a Request for Proposal (RFP) for consultancy services. Interested firms are invited to submit their bids by February 18, following which a technical evaluation will be conducted the next day. Initially, the engagement will be for a one-year period.

The Noida Authority allots land parcels on a lease basis for development under specific agreements. However, numerous developers have failed to comply with the stipulated terms, leading to significant project delays and defaults on land payments.

To address these issues, the Authority plans to introduce an escrow mechanism to ensure the timely settlement of dues when third-party rights are created through the sale of units, apartments, or plot developments.

The appointed consultancy firm will be responsible for drafting and executing escrow agreements while continuously monitoring fund flows.

The implementation of escrow accounts is part of a broader strategy aimed at recovering outstanding dues from defaulting developers, who collectively owe the Authority thousands of crores.

These jointly operated accounts will act as a safeguard against the misappropriation of buyer funds, ensuring that developers do not divert financial resources to other projects instead of meeting their obligations to the Authority.

Beyond managing escrow accounts, the consultancy will also have a crucial role in monitoring insolvency proceedings. The Authority requires real-time updates on cases being heard at the NCLT, particularly those involving firms at risk of insolvency but not yet formally admitted into proceedings.

By closely tracking these developments, the Authority aims to make informed decisions and take proactive measures to protect its financial interests.

For companies already undergoing insolvency proceedings, the consultant will assist in filing claims, coordinating with the Committee of Creditors (CoC), and ensuring active participation in the resolution process.

Currently, 17 group housing projects in Noida are entangled in NCLT proceedings, making it imperative for the Authority to stay vigilant and safeguard its financial stakes, officials stated.