1. Huge relief for 10 home buyers of Jaiprakash Associates, SC orders Rs 50 lakh relief

Huge relief for 10 home buyers of Jaiprakash Associates, SC orders Rs 50 lakh relief

The Supreme Court on Wednesday asked realty firm Jaiprakash Associates (JAL) to pay Rs 50 lakh as an interim relief to 10 home buyers of its Jaypee Kalypso Court housing project, which was launched in 2007, along the Noida-Greater Noida Expressway.

By: | New Delhi | Published: September 14, 2017 6:11 AM
jaypee,  Supreme Court, jaypee infratech, jaypee wishtown, Jaypee associates, nterim resolution professional, IRP, NCLT, homebuyers, flatbuyers, noida, greater noida, jaypee financial condition, bankruptcy, insolvency proceedings As of now, the apex court is looking into three aspects — parking fees, grant of interest on delayed delivery and determination of quantum in respect of the increased super area that has been handed over to these homebuyers. (Reuters)

The Supreme Court on Wednesday asked realty firm Jaiprakash Associates (JAL) to pay Rs 50 lakh as an interim relief to 10 home buyers of its Jaypee Kalypso Court housing project, which was launched in 2007, along the Noida-Greater Noida Expressway. A bench led by Chief Justice Dipak Misra asked JAL to pay Rs 50 lakh to the Developers Township Property Owners Welfare Society, which represents 10 home buyers in the case, as the latter have sought compensation for their loss caused on account of delay in delivery of over five years. While the Jaypee Kalypso Court project has 16 towers and was to be completed by 2011, work is yet to be finished in most of the towers.

As of now, the apex court is looking into three aspects — parking fees, grant of interest on delayed delivery and determination of quantum in respect of the increased super area that has been handed over to these homebuyers.

The apex court on July 15 last year had refused to stay the National Consumer Disputes Redressal Commission’s (NCDRC) May order that asked the developer to pay a penalty of 12% per annum for delaying the possession of homes to buyers in the Kalypso Court project on the Noida expressway. However, it had stayed a part of the consumer court’s order with regard to interest component subject to the JAL depositing Rs 4 crore by July 29, 2016.

Senior counsel Kapil Sibal, appearing for JAL, had then told the court that the group won’t be able to deliver the flats soon and was willing to negotiate with these 10 buyers and “we will work out to their satisfaction”.

NCDRC had also directed the Noida-based builder to hand over the possession of apartments to buyers by July 21, 2016, failing which it would have to pay a penalty of Rs 5,000 per flat per day till the project is completed.

The developer was also asked to provide adequate parking space in the project and refund the excess amount, if any, that had 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 had prior consent of the buyer. The consumer court had also imposed a cost of Rs 5 lakh on the developer.

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