Jaypee Group fined 12% annual penalty in Noida project

There has been an alarming increase in the number of violations reported with delivery of property on the part of the property owners or builders. This has been the case because of increasing awareness on the part of judiciary and the legislative. In a recent event, the mighty Jaypee Group has been fined a hefty 12% annual penalty by the National Consumer Disputes Redressal Commission (NCDRC). Once again the reason cited for the imposition of the penalty was the delay in the delivery of property to potential home buyers in the Kalypso Court project, located on the Noida-Greater Noida expressway. The order was passed on the second of May and it ordered the Jaypee Group to ensure that the possession of the property has been handed over to the buyers before July 21^st. If the Group fails to comply with the order, a further penalty of Rs. 5,000 will be imposed per flat per day until the completion of the project. Interestingly, the order also included judgments on the parking space provided. The Group would have to provide parking space to all the residents in the building complex. The money received by the Group as charges for parking space through the buyers will also have to be refunded along with 12% interest per annum from the date of the charge. This was after the court noticed that builders are not supposed to charge buyers on increase in super area of an apartment after construction without prior consent from the buyer. The project 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.

OUR TAKE

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. The increase in the number of delayed projects is not so alarming if you notice that it has been prevalent in the past too. Proper regulations and awareness has brought the issue out in the public though. This is good news for everyone. Such decisions and judgments will surely make the builder more honest in his planning and execution of the projects they undertake.