Supreme Court stays Jaypee penalty for Noida's Kalypso project delay

 The Supreme Court has stayed the execution of a 12 per cent per annum penalty imposed by the National Consumer Disputes Redressal Commission (NCDRC) in May on builder Jaypee group for delaying delivery of apartments in its Kalypso Court project on the Noida-Greater Noida Expressway till August 3.

The stay, however, is subject to the company depositing Rs 4 crore with the court within two weeks.

SC, however, did not stay two other parts of the NCDRC judgment which said Jaypee cannot charge for car parking and also for increase in super area of an apartment post construction unless they have prior consent of the buyer.

The apex court was hearing an appeal by Jaypee group to stay the NCDRC order.

In its May 2 order, the commission had also directed Jaypee group to handover possession of apartments in the project to home 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.

Jaypee Kalypso Court project was launched in 2007 and was to have 16 towers. It was to be completed by 2011 but work is still pending in most towers, with the builder starting to give possession to buyers in a few towers.

Jaypee group has told court that it can give delivery of apartments to 4 of the ten complainants in July. For the other 6, alternate accommodation is being arranged till they are given possession of their apartments.

Jaypee group was represented in the court by senior advocate Kapil Sibal.

Sahil Sethi, senior associate at law firm Saikrishna & Associates, which filed the case on behalf of Developers Township Property Owners Welfare Society that represents 10 home buyers in Jaypee Kalypso Court project said they will take instructions from their clients, the homebuyers, on whether the arrangement proposed by Jaypee in court is acceptable to them. "We will intimate the court at the next hearing in August," he said.

Last year, NCDRC had given a similar order against Unitech, asking it to pay 12 per cent penalty to home buyers in its Gurgaon project Unitech Vistas. Subsequently though, the Supreme Court had stayed the order of NCDRC against Unitech.

SOURCE: ETRealty.com