Noida Authority’s Lease Cancellation of Wave Group’s Commercial Land Reversed

NOIDA: In a significant decision, the Uttar Pradesh state government has overturned Noida Authority’s 2021 cancellation of Wave Group’s lease for a large commercial landholding in Noida. The reinstatement of this lease, covering 1.08 lakh square meters, was driven by the dual aims of promoting regional economic benefits and providing the Wave Group a fair opportunity to complete its high-profile project. The decision promises to inject fresh investment into Noida’s commercial landscape and accelerate development momentum in the city’s real estate sector.

Key Highlights and Terms of Reinstatement

The land, originally allocated to Wave Mega City Centre Pvt Ltd in 2011, is situated in sectors 25A and 32 and was earmarked for a mixed land-use project. Following the reinstatement order issued on August 25, 2023, the Wave Group must now meet updated compliance requirements set forth by the government to proceed with development. The UP government specified that the Wave Group’s outstanding dues, previously tallied at Rs 1,156 crore, will undergo recalculation under the Project Settlement Policy (PSP) framework. A special committee led by the chairman of the Greater Noida Industrial Development Authority will oversee this recalibration, ensuring fair adjustments without the imposition of additional interest or penalties for the period of the lease cancellation.

Wave Group’s Appeal and Legal Standpoint

Wave Group initially challenged Noida Authority’s cancellation order, citing procedural inconsistencies and filing a revision petition under the Uttar Pradesh Urban Planning and Development Act, 1973, as well as the Industrial Area Development Act, 1976. The legal process included the submission of a detailed report by Noida Authority on November 17, 2023, followed by a hearing on June 11, 2024, that ultimately contributed to the government’s favorable ruling for the company.

Implications for Noida’s Real Estate Sector

The reinstatement is seen as a significant boost to Noida’s commercial and real estate sectors, especially as it allows the Wave Group to revive its mixed-use project. Experts suggest that this development will bring substantial investment and job opportunities to the area, reinforcing Noida’s reputation as a promising destination for commercial growth in Uttar Pradesh.

While the Wave Group now has a renewed opportunity to move forward with its project, it must strictly adhere to the revised compliance terms. The state has clearly stipulated that no third-party rights can be created on the property until the Wave Group fully complies with the updated requirements.

This decision underscores the UP government’s intent to balance economic development goals with regulatory accountability, ultimately positioning Noida as a favorable environment for large-scale investments in the region’s rapidly evolving real estate landscape.