Realty major to give up Noida plot
Most of the land taken by real estate player Wave Infratech for an ambitious Rs 6,500-crore Noida project is going back to the Noida Authority . Wave Infratech has sent an application to the Noida Authority for the surrender of about 110 acres of the 152 acres of residential-cumcommercial use plot allotted to it in 2011 in sectors 32 and 25A.
According to the Noida Authority , the company has made the application under the UP government's new policy -Project Settlement Policy (PSP) -that is aimed at addressing the issues of the realty sector in Noida, Greater Noida and Yamuna Expressway areas.
In all, 152 acres of residential-cum-commercial use development was allotted to the Wave group in sectors 25A and 32 in March 2011 at an allotment rate of Rs 1,07,003 per square metre. According to officials, the realtor is likely to return the land which is lying vacant in Sector 25A, while retaining a part of the project. The first phase of the project with an investment of about Rs 4,000 crore for the development of about 9.5 million square feet was slated to be delivered by 2016. Currently, the land, which the realtor is likely to surrender is valued at more than Rs 10,000 crore.
Speaking to TOI, Dee pak Agarwal, chief executive officer (CEO), Noida Authority , confirmed that the application was being processed. “An 11-member committee has been formed to peruse the application and verify details,“ he said. “We had asked the company to submit a detailed project report informing the specific size of the land that they want to return, how many buyers have invested in the project and how much money they have invested, and whether there are any third party rights created in the project, etc.All these points are being verified.“ Agarwal said.
He said that once that is done and the committee was satisfied, it would recommend the surrender to the CEO for approval. “We expect this to happen soon“ Agarwal said.
No senior official from Wave Infratech was available for comment, when TOI contacted the realty group.
Once approved, this will be the second land deal being surrendered back to the Noida Authority . In 2009, realty major BPTP Ltd had surrendered 100 acres of its Rs 5,006-crore land deal, the biggest ever in India, to Noida Authority as it was unable to make the complete payment.BPTP had in 2008 bagged the 95-acre commercial plot in Sector 94, Noida.
According to Noida Au thority officials, more than 20 other realtors have also submitted applications under the PSP for different options. The three Authorities in Gautam Budh nagar had come up with the PSP in December last year, citing a slowdown in the realty sector as builders were unable to complete their projects, affecting lakhs of homebuyers. The PSP gives realtors an exit route from projects they are unable to execute or complete, as well as benefits homebuyers who are waiting past possession deadlines for delivery of their flats.Under the policy , a builder can exit a housing or commercial project in which construction on the allotted plot is yet to begin.