Noida Authority Takes Rs 300 Crore Hit, Clears Way for Max Estates’ Delhi One Project

Noida / 15 August 2024: The Noida Authority has agreed to a substantial reduction of Rs 300 crore in its dues from Max Estates to facilitate the resumption of construction at the stalled Delhi One commercial project. The project, located in Sector 16B, was acquired by Max Estates through insolvency proceedings last year.

The Authority’s decision comes after a protracted legal battle and multiple rounds of negotiations. Initially, the Authority had claimed dues worth Rs 932 crore, but the National Company Law Tribunal (NCLT) allowed Max Estates to pay only Rs 325.5 crore.

Following appeals and revisions, Max Estates submitted a revised resolution plan to the Noida Authority, offering to pay Rs 542 crore. The Authority has accepted this proposal, but the final amount to be paid by Max Estates over the next three years, including interest, will be Rs 613 crore.

The Authority has also granted Max Estates a three-year extension for project completion, after which penalties will be imposed for any delays.

The Delhi One project, originally conceived as a mixed-use development, will now be predominantly commercial. Max Estates plans to consolidate residential units into a single tower and convert the remaining residential buildings into commercial spaces. The proposed hotel will also be transformed into office space.

With this agreement, Max Estates can now proceed with the construction of the project, which is expected to be completed within 22 to 42 months.