The change of guard in Uttar Pradesh has dealt another blow to Wave Infratech, the realty arm of Ponty Chadha’s Wave Group.
After scrapping the proposed Yamuna City last year, the Yamuna Expressway Industrial Development Authority (YEIDA) has now asked the firm to forfeit Rs 50 crore deposited for registration and Rs 25 lakh sent as processing fee for a contract to build the township.
The firm had to deposit Rs 760 crore by March 28, 2011 for the project and the deadline was also extended. In May last year, however, when Wave asked the authority about handing over possession of the land, the administration did not reply and scrapped the scheme in June.
The firm then claimed a refund but after nine months and a change of government, the firm has now been told that the money would have to be forfeited.
“Due to the land acquisition row, the firm had anticipated that such a vast chunk of land would not be available in the near future and defaulted. They thought it was wise to surrender the project and pump cash in the City Centre project in Noida instead,” said a top official.
Wave had recently announced that it would invest around Rs 4,000 crore to develop the City Centre project in Noida.
In Yamuna City, Wave was supposed to develop plots and group housing apartments, besides institutional and commercial complexes in. Approximately 20 lakh people would have benefited.
Three companies — Gaur Sons, 3C and Wave Infratech —had participated in the bids and Wave was awarded the contract with a reserve price of Rs 7000 crore.
This was the biggest land deal signed here after the Noida City Centre project, which was inked with the same firm for Rs 700 crore.