Max Estates, the real estate arm of the Max Group, has been granted approval by the Noida authority to take over the troubled ‘Delhi One’ commercial project located in Sector 16B, Noida. The move comes after Max Estates committed to clearing dues amounting to Rs613 crore, a significant increase from the previously stipulated amount.
In February 2023, the National Company Law Tribunal (NCLT) had endorsed Max Estates’ resolution plan for developing a 34,697 square meter commercial plot under the ‘Delhi One’ project. This decision was contingent upon obtaining the Noida authority’s approval for the execution of the plan. Initially, the Noida authority had about Rs932 crore in dues related to the project. However, in the resolution plan, Max Estates agreed to pay approximately Rs325 crore. Following negotiations, the authority accepted a revised proposal from Max Estates, which involves a total payment of Rs613 crore, including interest. The company will deposit 25% of this amount upfront, with the remaining sum to be paid over a period of three years.
The ‘Delhi One’ project, spanning 12.5 acres, was originally launched by the 3C group but faced insolvency. The takeover by Max Estates is expected to substantially enhance the project’s development footprint, potentially adding 2.5 to 3 million square feet to its portfolio. Max Estates plans to invest approximately Rs2,000 crore into the project, which includes 2.8 million square feet of Grade A office space and serviced apartments. Currently, four operational towers exist within the complex, with one serviced apartment tower and four commercial towers under construction. A retail block is also underway, with nearly 50% of the civil work completed. Of the 2.8 million square feet of space, 1.3 million square feet have been pre-sold, while the remaining 1.5 million square feet will be available for lease or sale.
Experts anticipate that obtaining the necessary approvals for the project will take between six months to a year. Meanwhile, Max Estates is expected to revise the project’s plans to account for increased construction costs since the initial approval by the creditors in 2019.
