Jaypee group fined with 12% annual penalty in Noida’s Kalypso Court project

Off lately, there has been uproar in the Indian real estate market about property builders being criticised for not delivering their projects on time, and several home buyers have taken the legal route to handle such builders.

In one such case, the National Consumer Disputes Redressal Commission (NCDRC) has passed a landmark judgement and imposed a penalty of 12% per annum on Jaypee Group. The penalty has been imposed because the Noida-based builder delayed the possession of homes to buyers in the Kalypso Court project, located on the Noida-Greater Noida expressway.

The order dated May 2 has also directed Jaypee Group to hand over the possession of apartments to buyers by July 21, and if it fails to do so, a further penalty of Rs 5,000 per flat per day will be imposed until the completion of the project.

Also read: Delayed deliveries from builders could cost you lakhs in tax losses

Not only this, the builder has also been directed to provide adequate parking space in the project and refund the excess amount that was collected from customers for parking slots, and that too with 12% interest per annum from the date of the charge. For this, the commission has cited the reason that builders are not supposed to charge buyers on increase in super area of an apartment after construction without prior consent from the buyer.

As per property research firm Liases Foras, more than half of the real estate projects in India have been delayed by more than a year, and about 25% of them are delayed by over 36 months.

Talking of the project, it was launched in 2007 and was supposed to have 16 towers, with a deadline of the year 2011. However, even five years later, most of the towers have not been completed, and only five towers have been allotted to buyers.

Also read: These four cities offer the best luxury homes to home buyers

It was last year that another builder Unitech was asked to pay 12% penalty to homebuyers in the Unitech Vistas project located in Gurgaon, but the order got a stay by the Supreme Court later.

Image source