Max Group’s realty firm Max Estates on Friday said the National Company Law Tribunal has approved its bid to acquire a stalled mixed-use project ‘Delhi One’ in Noida through insolvency process—a development that will bring relief to nearly 300 stuck customers.
Max Estates is a subsidiary of Max Ventures and Industries Ltd.
“Our resolution plan for Delhi One project has been approved by the NCLT. A Committee of Creditors had approved our plan in 2019,” Max Ventures and Industries Ltd MaxVIL MD and CEO Sahil Vachani told reporters on Friday.
Boulevard Projects Pvt. Ltd., which is a special purpose vehicle owned by the promoters of realty firm 3C group, had launched Delhi One project around a decade ago on a plot of 34,697 square metres. The project consists of one commercial tower, one hotel tower, retail spaces and three residential towers.
The total development potential in this stalled project is 30 lakh square feet, out of which around half is still unsold, Vachani said, adding that Axis Bank and Piramal Enterprises are two lenders in this project.
Vachani said there are 288 allottees, who booked service apartments and commercial space, stuck in this project.
He said the company would be engaging with the Noida Authority to start construction of this stalled project. Boulevard Project had not paid the land cost to the authority.
Vachani said the Uttar Pradesh government should come out with a policy which will help in providing relief to thousands of property buyers stuck in various stalled projects across Noida, Greater Noida and Yamuna Expressway.
In the resolution plan, he said the company has suggested some changes in the project. It will no longer develop a hotel on this land parcel and instead build a commercial tower.
Max Estates already has developed one office complex Max Tower, comprising 6 lakh square feet of leased office space, near this Delhi One project.
As per the resolution plan, Max Estates has submitted a bid of over Rs 1,100 crore to acquire this project.
Secured financial creditors (Axis Bank and Piramal Enterprises) claimed nearly Rs 395 crore, against which the resolution plan provides for nearly Rs 158 crore.
Allottees have submitted claims of Rs 1,022 crore, of which Rs 841.41 crore was admitted.
In the plan, Noida Authority has been treated as secured financial creditor. The authority has submitted a claim of Rs 945 crore. The amount provided under the resolution plan is Rs 325.52 crore.