To safeguard repayment of the loan that it is providing to build tunnel roads in Bengaluru, the Housing and Urban Development Corporation (HUDCO) has directed Bengaluru Smart Infrastructure Ltd (B-SMILE) to submit a government order transferring proceeds from premium Floor Area Ratio (FAR) and advertisement revenue from auctioning advertising rights under the new bylaws across the city, directly to the SPV.
B-SMILE is also required to open an escrow account, where both premium FAR proceeds and advertisement revenues will be exclusively deposited. “HUDCO shall at all times possess a first charge over the funds held within this Escrow account,” the letter said.
