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Max Estates, a subsidiary of Max Ventures and Industries Ltd (MaxVIL), has received approval from the National Company Law Tribunal (NCLT) to acquire a stalled mixed-use project called Delhi One in Noida through the insolvency process. The project was launched by Boulevard Projects Pvt Ltd, a Special Purpose Vehicle (SPV) owned by the promoters of realty firm 3C group, around a decade ago. It consists of one commercial tower, one hotel tower, retail spaces and three residential towers, with a total development potential of 30 lakh square feet. Nearly 300 stuck customers are expected to benefit from the acquisition.
According to company officials, the company's resolution plan approved by the NCLT for Delhi One had been sanctioned in 2019 by the Committee of Creditors (CoC) as well. It is alleged that Boulevard Project had not paid the land cost to the authority. Axis Bank and Piramal Enterprises are two lenders involved in this project. The company will now engage with Noida Authority to begin construction of the stalled project. Around half of the development potential in this stalled project is still unsold.
The resolution plan submitted by Max Estates proposes changes to the project. Instead of developing a hotel on the land parcel, the company will build a commercial tower. Max Estates has already developed one office complex, Max Tower, comprising 6 lakh square feet of leased office space, near the Delhi One project.
Max Estates has submitted a bid of over Rs 1,100 crore to acquire this project. The secured financial creditors (Axis Bank and Piramal Enterprises) claimed nearly Rs 395 crore, against which the resolution plan provides for nearly Rs 158 crore. The allottees have submitted claims of Rs 1,022 crore, of which Rs 841.41 crore was admitted. In the resolution plan, the Noida Authority has been treated as a secured financial creditor. The authority has submitted a claim of Rs 945 crore, and the amount provided under the resolution plan is Rs 325.52 crore.
The approval of Max Estates' bid for the Delhi One project is expected to bring relief to nearly 300 customers who had been stuck for a long time due to the project's stalled development. The resolution plan submitted by Max Estates proposes changes to the project, which will no longer include a hotel but a commercial tower instead. Max Estates' successful acquisition of the Delhi One project could pave the way for similar acquisitions in the region, offering relief to thousands of property buyers stuck in various stalled projects across Noida, Greater Noida and Yamuna Expressway.
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