14 Developers Have 2 Days To Open Escrow A/cs Or Face Recovery Certs, ET RealEstate

August 30, 2023

NOIDA: Fourteen defaulting developers have until the end of the month — August 31 — to open escrow accounts, the Noida Authority has decided, in a move to recover the dues owed to it by the builders.

So far, six developers have opened escrow accounts with the Authority.

Two months back, the 59 developers that owed the Authority a combined Rs 7,000 crore were asked to open escrow accounts. The jointly operated accounts are meant to serve as a deterrent against diverting funds collected from homebuyers to other projects.

The latest deadline was announced by Authority CEO Lokesh M on Tuesday. “We are trying to find solutions to builder-buyer issues,” he said.

The CEO had met representatives of 24 developers earlier this month and asked them to clear their dues, otherwise the Authority would issue recovery certificates against them.

On Tuesday, meanwhile, the Authority CEO gave updates about other projects in the city.

The Noida Authority is preparing to form a committee of senior officials to oversee implementation of the Ganga Jal project in the city. At present, the project to provide 37.5 cusecs of Ganga water daily is facing obstacles at several locations.

Lokesh M emphasised the need for a bus service in the city and said that he has directed officials to develop electric vehicle charging stations at the Sector 82 bus stand. “The Authority is in touch with the state government to bring in electric buses for starting the city bus service. The Noida Authority plans to request the government to provide these buses,” he said.

On the proposed Chilla Elevated Road, the UP State Bridge Corporation Ltd (UPSBCL) will soon give a presentation to the Authority on the construction model that will accommodate escalated costs, he said. After that, a tender will be floated.

As for the Bhangel Elevated Road, UPSBCL has made an additional demand of about Rs 150 crore to account for the increase in GST and hike in cost of construction materials. The Authority is preparing to approve an additional budget of at least Rs 100 crore to meet these demands, he said.

The Noida Authority will also write a letter to the state government to open the financial bid for the heliport to be built in Sector 151A, the chief executive officer said.

Planned on a PPP model, a Bangalore-based company was found to be eligible in the technical bid. The heliport is likely to cost Rs 43.1 crore.

  • Published On Aug 30, 2023 at 09:02 AM IST

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