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Court orders Jaypee to pay 12% penalty

Posted by zh_wp on May 10, 2016
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NEW DELHI: The National Consumer Disputes Redressal Commission (NCDRC) has imposed a penalty of 12% per annum on Jaypee Group for delaying the possession of homes to buyers in Kalypso Court project on the Noida-Greater Noida expressway.

NCDRC, in its order dated May 2, has also directed the Noida-based builder to hand over the possession of apartments to buyers by July 21 failing which it will have to pay a penalty of Rs 5,000 per flat per day till the project is completed.

The developer has also been told to provide adequate parking space in the project and refund the excess amount, if any, that has been collected from customers for parking slots, with 12% interest per annum from the date of the charge. The commission held that builders cannot charge buyers on increase in super area of an apartment after construction unless they have prior consent of the buyer.

The move comes amid protests by home buyers against builders for delaying possession of homes. According to property research firm Liases Foras, more than half of the real estate projects across the country are currently delayed by over 12 months. Of this about 25% are delayed by over 36 months.

Sahil Sethi, senior associate at law firm Saikrishna & Associates, which filed the case on behalf of Developers Township Property Owners Welfare Society representing 10 home buyers in Jaypee Kalypso Court project, said this was a landmark judgement that clears a lot of issues that home buyers face in general.
Jaypee Kalypso Court project, which was launched in 2007, was to have 16 towers. The housing project was to be completed by 2011 but work is still pending in most towers, with the builders starting to give possession to buyers in only five towers.

“We met Jaypee several times and when we did not get any relief from them, we were forced to go to NCDRC. We got the judgment in record five months’ time,” said Arvind Jain, president of Developers Township Property Owners Welfare Society. Last year, NCDRC had given a similar order against Unitech, asking it to pay 12% penalty to buyers in its Gurgaon project Unitech Vistas. Although the order was stayed by the Supreme Court later.

Thanks India Times:

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