Wave Megacity Centre files for bankruptcy

Noida: The fate of hundreds of homebuyers, who invested in the projects of Wave Megacity Centre Private Limited, hangs in the balance as the debt-ridden realty firm has moved the National Company Law Tribunal (NCLT) seeking corporate insolvency proceedings against itself

Noida: The fate of hundreds of homebuyers, who invested in the projects of Wave Megacity Centre Private Limited, hangs in the balance as the debt-ridden realty firm has moved the National Company Law Tribunal (NCLT) seeking corporate insolvency proceedings against itself.

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Wave Megacity Centre had launched residential and commercial projects in Noida’s sectors 25A and 32 in 2011-12 with an assurance of giving the possession from 2014 onwards. However, the company is yet to deliver units in residential towers, though it has delivered some shops in its Sector 32 project.

Plagued by financial crisis for several years, the company’s condition worsened this year when the Noida authority cancelled the land allotment in February for alleged failure to clear dues to the tune of ₹2,700 crore.

In its petition filed on Friday, the realty firm has asked NCLT to initiate the insolvency proceedings “due to failure of... corporate debtor (Wave Megacity Centre) to pay dues of the Noida authority for an amount of ₹1,222.64 crore”. The company said it does not have “adequate cash flow to meet its obligation to the customers and financial lenders”.

The Noida authority had allotted 618,952 square metres (sqm) of land in sectors 25A and 32 for a mixed land use project to the company in March 2011. But, amid the slowdown in the real estate sector, the firm had returned 454,131.62 sqm land to the authority.

On March 10 this year, the Noida authority had taken possession of 108,421.13 sqm of land (in Sector 32) of the Wave Megacity Centre after the developer allegedly failed to pay the land cost dues. In its petition, the realty firm called the action an unlawful and arbitrary decision taken by the Noida authority to seek insolvency proceedings.

Rajiv Gupta, managing director for Wave Infratech, said, “We cannot comment as the matter is sub-judice. We are working for the best interest of the buyers.”

As per the process now, NCLT may appoint an interim resolution professional who will take control of the Wave Megacity Centre and begin corporate insolvency proceedings. The Noida authority may also get an opportunity to put forth the issue of their financial dues before NCLT.

When asked, Noida authority’s chief executive officer Ritu Maheshwari said, “We are not aware of Wave Megacity Centre filing an application before NCLT. We cancelled the land allotment and sealed the land as per rules.”

The group has partially developed a residential project ‘Amore’ that has about 1,500 housing units, a 43-storey commercial tower and some shops in Sector 32.

Buyers are worried a lot after getting news about the realty firm’s case before NCLT. “My father, after retirement, invested ₹1 crore to buy a 3-BHK home in Amore in 2012 with the assurance of getting possession of the house in 2016. My father died in 2020 without getting to move from a rented apartment into his own house. The latest development is a setback for us because we are paying rent and loan instalments for the last eight years,” said Anshuman Jain, a buyer.