In a significant decision impacting the revival of the long-delayed Delhi One realty project in Noida, the Noida Authority has denied a waiver request on transfer charges worth ₹67 crore. Max Estates Private Limited, which took over the stalled project through insolvency proceedings, sought the waiver citing public interest and revival efforts. However, the authority has stood firm, insisting the charges must be paid under the Unified Policy.
The project, located in Sector 16B and once hailed as a landmark mixed-use development, has seen years of delays affecting hundreds of homebuyers and investors. With the authority’s recent decision, the financial and legal roadmap for completing the project has become even more defined.
Delhi One Transfer Fee Dispute: Key Developments
Background of the Project
- Original Developer: Boulevard Projects Pvt. Ltd.
- Location: Sector 16B, Noida
- Project Type: Mixed-use development (residential, commercial, hospitality)
- Takeover Entity: Max Estates Pvt. Ltd., a Max Group company
- Route of Acquisition: Through NCLT (corporate insolvency resolution process)
Max Estates’ Proposal & Offer
- Took over the project to revive it through an approved resolution plan.
- Proposed settling dues amounting to ₹613 crore over three years.
- Authority had raised claims over ₹932 crore; only ₹325 crore was accepted in the resolution plan.
- Requested a waiver of ₹67 crore in Change in Constitution (CIC) charges.
Authority’s Stand
- In its June 14 Board meeting, the Noida Authority rejected the waiver request.
- Decision was based on compliance with the newly adopted Unified Policy.
- CEO Lokesh M stated, “The full amount must be paid as per the policy.”
- Authority mentioned waivers could be allowed only with court direction.
Legal Proceedings
- Max Estates moved the Allahabad High Court seeking resolution.
- The court directed the authority to make a decision and inform the developer within four weeks.
- Following this, Max Estates deposited ₹22 crore in an interest-bearing account as a gesture of commitment.
Current Status
- Authority upheld the charge; no waiver granted.
- First installment of ₹135 crore already deposited by Max Estates.
- Developer granted a 3-year free extension to complete the project.
- Project work expected to resume with renewed momentum post-payment clearances.
Quick Summary Table:
| Particulars | Details |
|---|---|
| Project Name | Delhi One |
| Location | Sector 16B, Noida |
| Original Developer | Boulevard Projects Pvt. Ltd. |
| Current Developer | Max Estates Pvt. Ltd. (Max Group) |
| Acquisition Method | NCLT Corporate Insolvency Resolution |
| Total Settlement Proposal | ₹613 crore (to be paid over 3 years) |
| Transfer Charges (CIC) | ₹67 crore |
| Authority’s Decision | No waiver; full payment required |
| Legal Status | Matter is sub judice in High Court |
| Project Extension | 3-year free extension granted |
Quotes
“The decision not to give waivers was taken by the authority’s board meeting on June 14, which stated that the full amount must be paid under its newly implemented Unified Policy.”
— Lokesh M, CEO, Noida Authority
“Max Estates had sought waiver on the ground that the transfer is not ‘business as usual’ and is aimed at reviving a stalled project benefitting hundreds of homebuyers.”
— Max Estates representative (statement inferred from proceedings)
FAQs
1. Why did Noida Authority deny the ₹67 crore waiver to Max Estates?
The authority cited compliance with the new Unified Policy, under which all transfer charges must be paid without exceptions unless a court order is issued.
2. What is the Delhi One project and why is it significant?
Delhi One is a high-profile mixed-use project in Noida that has faced delays for years. Its revival is important for homebuyers, investors, and the local real estate market.
3. What was the original claim made by the Noida Authority?
The authority had initially raised claims exceeding ₹932 crore, of which ₹325 crore was accepted under the insolvency resolution plan.
4. Has Max Estates started fulfilling its payment obligations?
Yes, Max Estates has already deposited ₹135 crore as the first installment of the ₹613 crore settlement offer and ₹22 crore in a separate account as a goodwill gesture.
5. Will the project get more time for completion?
Yes, the authority has granted a three-year free extension to Max Estates to complete the project.