The state govt has reversed Noida Authority's Feb 2021 order cancelling Wave Group's lease of 1.08 lakh square metres of prime commercial land in the heart of the city, emphasising it was giving "fair chance" to the company and the economic benefits and investment boost to Noida in allowing the project to proceed.
The land was allotted to Wave Mega City Centre Pvt Ltd in 2011 for its mixed land-use project in sectors 25A and 32. The state govt reinstated Wave's lease in an order dated on Aug 25 and introduced updated compliance requirements for the project.
Wave had approached the govt against Noida's order with a revision plea, arguing, among other things, that there were procedural flaws in the cancellation of lease. It filed the plea under Section 41(3) of the Uttar Pradesh Urban Planning and Development Act, 1973, and Section 12 of the Industrial Area Development Act, 1976. A report was submitted by Noida Authority on Nov 17, 2023, and a hearing took place on June 11 this year before the final order was passed.
Under the revised terms, Wave's total dues of Rs 1,156 crore will be recalculated under the project settlement policy (PSP) framework with a committee led by the Greater Noida Industrial Development Authority chairman providing guidance. No interest or penalties will apply to the portion of the land whose lease was scrapped for the duration of the cancellation.
However, till it complies fully with the revised terms, the developer cannot create third-party rights on the land. Wave Mega City Centre Pvt Ltd, part of Wave Group, launched Mega City Centre project in sectors 25A and 32 in 2011-12, including high street stores and Amore residential society. Initial delivery was expected by 2014, but units in residential towers and other commercial spaces remain incomplete, though some shops in Sector 32 have been completed.
In response to these delays and financial constraints impacting many developers in Noida, which together with Greater Noida has the largest number of stalled projects in the country, the state govt brought PSP on Dec 15, 2016, allowing partial surrenders and restructuring of projects. Wave Mega City Centre applied under PSP in 2017, seeking to retain only 1.57 lakh sqm of the original allotment.
The company had paid Rs 1,469 crore, which included Rs 650 crore in standard interest and Rs 109 crore in penal interest. Under PSP guidelines, 15% of the deposited amount, totalling Rs 106 crore, was forfeited. For the balance, Noida subsequently allocated 56,400 sqm at the original allotment rate, with an additional 1 lakh sqm available for purchase at a revised rate.
During subsequent proceedings, Wave Mega City Centre raised concerns over high interest charges and requested reconsideration. After back and forth on this, on Dec 3, 2020, the Noida Authority board decided that the principal paid by the developer would be credited toward premium payments, while interest dues would remain untouched. After this, Noida issued a final notice for payment of around Rs 2,500 crore for 1.08 lakh sqm. It issued a cancellation order and reclaimed the land due to non-payment after this. In its petition, Wave argued it was actively addressing financial obligations and making payments despite challenging market conditions, and attributed project delays to external regulatory factors beyond its control. It argued that it had already made a heavy investment and warned cancellation would harm retail unit buyers.
