The Noida authority has firmly denied Max Estates’ plea to waive ₹67 crore in transfer fees related to the Delhi One real estate project in Sector 16B. This decision upholds the authority’s demand for full payment under its recently introduced Unified Policy, closing the door on any discounts for the charges known as Change in Constitution (CIC) fees.
Background: Max Estates’ Takeover of Delhi One Project
Max Estates, a part of the Max Group, acquired the stalled Delhi One project through the corporate insolvency resolution process (CIRP) managed by the National Company Law Tribunal (NCLT). The project, initially developed by Boulevard Projects Private Limited, had been mired in delays, affecting hundreds of homebuyers awaiting completion.
As the successful resolution applicant, Max Estates proposed a detailed plan to settle outstanding dues with secured creditors and the Noida authority. The authority initially raised claims exceeding ₹932 crore, but only ₹325 crore was formally recognized in the resolution plan.
Settlement Proposal and Waiver Request
To accelerate project completion, Max Estates offered to pay ₹613 crore over three years to clear liabilities. The Noida authority accepted this revised settlement in principle. However, Max Estates also requested a waiver on the ₹67 crore CIC charges, arguing that these fees should not apply in the context of insolvency resolution and project revival — a move they said would ultimately benefit homebuyers and investors by facilitating the project’s restart.
When the authority did not provide a decision on this waiver, Max Estates took the matter to the Allahabad High Court earlier this year. In April, the court directed the Noida authority to convene its board and make a decision within four weeks.
Noida Authority’s Final Verdict
Following a thorough review, the authority’s Board, in its June 14 meeting, resolved that the entire ₹67 crore CIC charge remains payable and will not be waived. Lokesh M, CEO of the Noida authority, clarified, “The decision not to grant any waiver was made as per the new Unified Policy, requiring the full amount to be paid.”
Max Estates has already made the first payment installment of ₹135 crore under the ₹613 crore settlement plan.
The authority also granted a three-year extension to Max Estates for project completion, signaling a willingness to support the developer in fulfilling the resolution plan but without financial concessions on transfer fees.
What Lies Ahead for Delhi One?
The Delhi One project’s future now hinges on Max Estates’ adherence to the agreed payment schedule and timely execution of the revival plan. The Noida authority indicated that a waiver could only be reconsidered if a court orders it explicitly.
For now, Max Estates remains tight-lipped, citing the ongoing legal proceedings.
This development underscores the stringent approach Noida authority is taking towards recovery of dues amidst the growing trend of insolvency-driven real estate takeovers — balancing regulatory rigor with the need to revive delayed housing projects.