NCR real estate news: Max Group to take over 3C’s Delhi One realty project in Noida
NCR-based real estate firm Max Group will take over and develop the 3C's Delhi One project located in Noida and pay ₹542 crore to the Noida Authority
NOIDA: As the Noida authority approves the resolution plan, the Max Group is all set to take over the 3C Group’s Delhi One project that consists of a five-star hotel, service apartments and office space at Delhi-Noida border.
Now Max Group will take over and develop the project and pay ₹542 crore to the Noida authority to take over the Delhi One project located in Sector 16A.
The authority board has approved the settlement under which the Max Estate will pay ₹542 crore out of ₹932.68 crore total dues owed by realtor of Delhi One, along with the interest. The Max Estate will have to pay ₹613 crore to the Noida authority.
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“The authority board has approved three years additional time to build this project for free. We will implement the decisions taken in the board meeting,” said Lokesh M, chief executive officer, Noida authority.
The resolution plan
The national company law tribunal (NCLT) had on February 27, 2023 approved the resolution plan of Max Estate Limited, the real estate arm of Max Group for delayed ‘Delhi One’ residential project of Boulevard projects private limited, a 3C Group company. It paved the way for taking over of this Noida’s luxurious realty project, located at Delhi-Noida border just next to DND Flyway.
Subsequently, the Max Estate requested the Noida authority to approve the plan that has now been given a green signal by the board on July 12, 2024. The minutes of the meeting were released on Monday evening, said officials.
The Max Estate Limited had already taken over a commercial tower part of Delhi One and delivered the same under the name ‘Max Square’ having a 6.7 lakh square feet (15.3 acre) space.
The NCLT had approved the resolution plan submitted by Max Estate Limited on February 27, 2023 and now the order has been made public by the resolution applicant- Max on Friday.
The NCLT had on February 8, 2019 appointed Amit Agarwal as interim resolution professional for the realty firm 3C’s Boulevard projects private limited following a petition filed by SGM Webtech Limited Private and initiated the corporate insolvency resolution process.
On November 11, 2019 the committee of creditors consisting of home-buyers, banks and other stakeholders approved the resolution plan of Max by 86% votes.
“Subject to the observations made in this Order, the Resolution Plan of ₹1,118.3 crore is hereby approved. The Resolution Plan shall form part of this order. The plan is binding on the corporate debtor and other stakeholders involved so that revival of the debtor company shall come into force with immediate effect,” the NCLT order delivered by Ramalingam Sudhakar president and Avinash K Srivastava technical member had stated.
The NCLT had asked the Max Estates to approach the Noida authority to discuss the financial dues issue. The Max has proposed that it can pay the principal amount of ₹400 crore out of ₹900 crore land dues against this project. As a result, Max Estate approached the Noida authority for approval, which has been given now, said officials.
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“Yes, we have seen the official release of Noida Board minutes. It is a positive development. We are awaiting formal response to our application from Noida authority for full clarity on our proposal and associated business prerequisites to implement the plan,” said Sahil Vachani chief executive officer and managing director of Max Estates.
The back story
In January 2014, the 3C had launched Delhi One project spread on 34,697 square metres (8.5 acre) in Noida’s sector 16B just next to Delhi-Noida-Delhi Toll plaza. It has tied up with Four Seasons brand to make a five star hotel, services apartments and commercial tower in this project that got delayed amid financial crisis.
As per the resolution plan, the Max will deliver Tower B in 22 months, it will take 40 months to build 576 apartments and 42 months to build the commercial tower part of this project.
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The NCLT has approved ₹1,118 crore resolution plan to revive this project. The NCLT has also approved the changes in the design of this project and agreed to do away with the five star hotel tower that was part of this project.