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The Noida Authority has denied Max Estates' request for a INR 67 crore waiver in transfer fees for the stalled Delhi One project in Sector 16B. Max Estates took over the project through a corporate insolvency process approved by the NCLT, offering to pay INR 613 crore in dues over three years to revive it. The Authority accepted the payment plan but ruled that the full transfer charges under its Unified Policy must still be paid, rejecting arguments that the insolvency process justified a waiver. Max Estates has already paid INR 135 crore, with three years granted to complete the project and clear dues.
The Noida Authority recently denied a substantial waiver in transfer fees for a real estate project. The authority upheld its newly implemented Unified Policy, requiring full payment despite the developer's arguments related to its takeover through a corporate insolvency process. This decision also impacts the Delhi One project in Sector 16B. Advertisement
Max Estates Private Limited had taken over this stalled Delhi One project through a corporate insolvency resolution process (CIRP) via the National Company Law Tribunal (NCLT). The project has faced years of delays, affecting hundreds of homebuyers.
The Noida Authority initially claimed over INR 932 crore in dues from the original developer, though only INR 325 crore was formally accepted in the resolution plan. Max Estates subsequently offered to pay INR 613 crore over three years to clear outstanding liabilities and expedite project work, an offer the Authority accepted in principle.
However, Max Estates sought a waiver of INR 67 crore in Change in Constitution (CIC) charges, arguing these were not justified given the context of insolvency resolution and project revival, which benefited homebuyers and investors. The developer even offered to deposit INR 22 crore in a separate interest-bearing account.
After receiving no decision from the Authority, Max Estates approached the Allahabad High Court, which in April directed the Authority to make a decision within four weeks. The Authority's Board then ruled that the full INR 67 crore in CIC charges remained payable, stating that a waiver could only be allowed if a court order was issued specifically in this regard.
Officials reportedly clarified that another case involving Sector 62 could not be compared, as it involved different categories of land use. Max Estates has already deposited the first installment of INR 135 crore under the INR 613 crore settlement. The project's completion now depends on the developer completing these payments and adhering to the resolution plan. The Authority has granted a three-year free extension to finish the project.
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