NOIDA: The Noida Authority on Wednesday said it has taken over possession of 1.08 lakh sq metre commercial land that was allotted to real estate developer Wave Group, over unpaid dues of about Rs 2,500 crore.
The group termed the action as “high handed” and “illegal” and added that it would take “appropriate legal recourse” against the Noida Authority.
The reclaimed land in Sector 25A and Sector 32 has two buildings, including a 43-storey structure, besides uncovered land, the Noida Authority said.
Wave Mega City Centre was allotted 6.18 lakh sq metre of commercial land in 2011. Eventually, the group was allotted an additional land parcel of 1.08 lakh sq metre and this allotment was cancelled on February 11 this year, the Authority said.
“Today, possession of this additional 1.08 lakh sq metre land has been taken over. It includes an uncovered area of 63,568 sq metres and 44,853 sq metres covered area.
“This land has two buildings, one a 43-storey and the other 3- to 10-storey. Both these buildings have been sealed,” the Authority said in a statement.
The Authority had earlier taken over another land parcel that was allotted to the Wave Group, which is now left with a much smaller but premium 56,400 sq metre plot.
“So far, possession of 5.62 lakh sq metre land that was allotted to the Wave Mega City Centre has been taken by the Noida Authority,” the statement added.
Noida Authority CEO Ritu Maheshwari told PTI that the real estate developer owed about Rs 2,500 crore in land dues and lease rent which was to be paid in different stages.
“Now, only the lease rent would be left due which is a much smaller amount,” she said.
Responding to the development, the Wave Group said, “The Noida Authority’s high-handed action is an illegal act that will cause a massive loss to all the stakeholders, including the buyers.”
It added that for reasons best known to them, the Noida Authority is acting against settled norms and its own project settlement policy. “We believe that we have a strong case. We are in the process of taking appropriate legal recourse against the Noida Authority so as to protect the interest of all the stakeholders,” a spokesperson for the group said.
Initially, Wave was preparing to develop this land as a commercial hub, but in 2016, the Wave Builder applied to return the land to the Authority under the Project Settlement Policy.
However, the action related to the withdrawal of the property could not be completed. Later, under the Project Settlement Policy, the builder again applied to give back 4.5 lakh square metres of land. The Authority then took possession of the land, completing the action of taking back the land. The surrender was formalised between the Wave Builder and the Authority about three months ago.
The authority plans to sell the land in small parcels as it will be very difficult to sell 4.5 lakh square metres of commercial land simultaneously.
The Authority will divide this entire land into 9 plots. This will increase the price of land. Investors will have to invest less money to buy land and the possibility of selling land will be more.
If the authority’s plan is successful, the authority will get revenue of more than 7,000 crores.
Source: PTI and IANS