The state government has overturned Noida Authority's February 2021 decision to cancel the lease of 1.08 lakh square meters of prime commercial land granted to Wave Group in the heart of Noida. The reversal aims to provide the company a "fair chance" and acknowledges the economic benefits and investment potential the project could bring to the city. Initially allocated in 2011 to Wave Mega City Centre Pvt Ltd for a mixed-use development in sectors 25A and 32, the lease was reinstated through a government order dated August 25, along with updated compliance requirements for the project.

Wave had filed a revision plea with the government challenging Noida Authority's lease cancellation, arguing, among other points, that procedural flaws were involved. The plea was submitted under Section 41(3) of the Uttar Pradesh Urban Planning and Development Act, 1973, and Section 12 of the Industrial Area Development Act, 1976. Noida Authority provided a report on November 17, 2023, and a hearing was held on June 11 this year before the final order was issued.

According to the revised terms, Wave's total dues of INR 1,156 crore will be recalculated under the Project Settlement Policy (PSP) framework, overseen by a committee led by the chairman of the Greater Noida Industrial Development Authority. No interest or penalties will be imposed on the portion of land affected by the lease cancellation during the period it was revoked. However, the developer is restricted from creating third-party rights on the land until it fully meets the revised terms.

Wave Mega City Centre Pvt Ltd, a subsidiary of Wave Group, launched the Mega City Centre project in sectors 25A and 32 in 2011-12, which included high street retail stores and the Amore residential society. Initial deliveries were scheduled for 2014, yet many residential units and commercial spaces remain incomplete, though some shops in Sector 32 are finished. Due to delays and financial difficulties affecting numerous developers in Noida, which has the nation's highest number of stalled projects alongside Greater Noida, the state government introduced the Project Settlement Policy (PSP) on December 15, 2016, to allow partial surrenders and restructuring of projects. In 2017, Wave Mega City Centre applied under PSP, opting to retain only 1.57 lakh sqm of its original allocation.

The company had made a total payment of INR 1,469 crore, which included INR 650 crore in standard interest and INR 109 crore in penal interest. As per PSP guidelines, 15% of this amount, or INR 106 crore, was forfeited. For the remaining balance, Noida subsequently allocated 56,400 sqm at the original allotment rate, with an additional 1 lakh sqm available for purchase at an updated rate. During further proceedings, Wave Mega City Centre expressed concerns over high interest charges and requested a review. After discussions, on December 3, 2020, the Noida Authority board resolved that the principal amount paid by the developer would be credited toward premium payments, while the interest dues would remain unaffected.

Following this, Noida issued a final notice demanding payment of approximately INR 2,500 crore for 1.08 lakh sqm. Subsequently, it issued a cancellation order and reclaimed the land due to non-payment. In its petition, Wave contended that it was actively working to meet its financial obligations and making payments despite difficult market conditions. The company attributed project delays to external regulatory factors beyond its control and emphasized that it had already invested significantly, warning that cancellation would adversely affect retail unit buyers.

The reinstatement of Wave Group's lease marks a significant development in Noida's commercial landscape, reflecting the government's intent to foster investment and support struggling developers. The revised terms under the Project Settlement Policy provide a framework for Wave to address its financial obligations without incurring additional penalties, potentially revitalizing the stalled Mega City Centre project. However, the ongoing challenges posed by external regulatory factors and market conditions underscore the need for continued vigilance and support from authorities. The outcome will be critical not only for Wave but also for the broader real estate market and retail buyers affected by these developments.