Greater Noida: Greater Noida Authority has decided to now cover financial institutions and banks, which are related to group housing projects, in the Escrow account management procedure.
Until now, the authority has prepared an ESCROW account with private developers but does not allow bank participation that has provided funds to developers for the project.
Publishing orders recently, the authority paved the way for banks concerned to become stakeholders in the operation and monitoring of the Escrow account.
Introduced in May 2016, along with the Rera, the Escrow account system is said to be a drug to prevent funding.
The amount deposited in an escrow account must be used for certain purposes such as apraright complex construction.
Also, funds deposited in an escrow account will be used for further construction activities.
Financial institutions and banks have asked for authority to enable their participation in monitoring Escrow accounts.
“This is similar to having another class monitor to discipline students.
Banks, which have provided funds to developers, will be able to see that money taken from buyers is used for further construction activities from the same project,” said an officer.
The authority has deducted a structure that was changed from the Escrow account at the Board meeting which had just been held on September 25.
After that, a command was issued for this effect on October 18, official said.
In Greater Noida, about 1 lakh unit in a housing project is in various stages of construction.
Officials say that the same procedure will be followed while dealing with commercial projects and ITES / ITES to avoid transferring funds and ensuring timely settlement.