Max Estates, the property arm of the MaxGroup, has received approval from the Noida authority to overtake a commercial project in sector 16B Noida, by clearing Rs 613 crore dues of the authority.
In February 2023, the National Company Law Tribunal (NCLT) approved the resolution plan of Max for the development of a commercial plot measuring 34,697 square meters in Noida under the project name ‘Delhi One’.
The NCLT had asked the developer to seek the authority’s approval for the implementation of the plan.
The Noida authority has about Rs 932 crore dues on the project, but as per the resolution plan, Max had pay around Rs 325 crore.
“We had received proposal from Noida authority where the company said instead of Rs 325 cror, it is willing to pay Rs 542 crore over the period of three years, which is 58% of the total dues. With interest, the payment will be Rs 613 crore and the company will deposit 25% upfront. We have approved the proposal,” the authority has said in a statement.
This project has the potential to add 2.5–3 million square feet of additional development footprint to the portfolio of Max Estates.
Max might make some changes to the original plan as the cost of construction has gone up substantially since the committee of creditors first approved the project in 2019.
The Delhi One project, spread over 12.5 acres, was started by the 3C group, and it later went into insolvency. The requisite approvals will take anywhere from six months to a year, say experts.
The company is expected to invest Rs 2,000 crore in developing 2.8 million sq ft of grade A office space and serviced apartments.
There are already four operational towers in the complex; one serviced apartment tower and four commercial towers are under construction.
Additionally, one retail block is under construction, and nearly 50% of the civil work is complete in the under-construction towers.
The bulk of the superstructure for various buildings was already complete before the project stalled.
Of the 2.8 million square feet, about 1.3 million square feet have been pre-sold, and the remaining 1.5 million square feet will be available for lease or sale.
