In a letter written to the IRP through legal firm Trilegal, home buyers have demanded completion of all pending constructions at Wish Town by December 2018.
Around 2,200 home buyers of Jaypee Infratech’s Wish Town projects in Noida have urged insolvency resolution professional (IRP) Anuj Jain to include in the interim and final resolution plans a provision of setting aside Rs 10,000 crore to complete the projects and pay compensation for delay to buyers at the rate of 18%. In a letter written to the IRP through legal firm Trilegal, home buyers have demanded completion of all pending constructions at Wish Town by December 2018. Besides setting aside money for completion of the Wish Town project, buyers have also asked for a provision of a bank guarantee of at least Rs 5,000 crore to be provided by Jaiprakash Associates to take care of any cost overruns or similar events in relation to the completion of the project.
They have also requested the IRP to take into account the rights of home buyers under the Real Estate Act. According to the section 18 of the RERA, if the promoter fails to give possession of an apartment, plot or building in accordance with the terms of the agreement for sale or allotment letter for any reason, the promoter shall be liable on demand and at the option of allottees (as defined under RERA, which includes home buyers) to return the amount received by the promoter along with interest.
Also, under RERA, if the allottees decide not to withdraw from a real estate project and seek construction of their flats/apartments/plots, the promoter is liable to pay the interest for every month of the delay till handing over of possession. Home buyers also have a right under Section 19(4) of RERA to seek compensation for every month of delay, till the handing over of possession. Home buyers have demanded that future installments to be paid by them should be deposited in an escrow account, and responsibility of completing Wish Town should be assigned to contracting companies such as National Buildings Construction Corporation, Larsen & Toubro, Godrej Properties and Tata Housing. They have also called for setting up of a joint project monitoring mechanism of lenders, builder, contractor and home buyers to monitor and control the quality and costs of the Wish Town project on an ongoing basis.