Jaypee told to pay 12% annual penalty to home buyers in Kalypso Court project

Debt-laden Jaypee Group has been told to compensate home buyers of its Kalypso Court project in Noida by the National Consumer Disputes Redressal Commission. The developer has been penalised 12% annualy for not giving possession to home buyers, a report in The Economic Times said.

The consumer dispute redressal commision, NCDRC, has also ordered the real estate developer to hand over the possession of apartments to buyers by July 21 failing which a penalty of Rs 5,000 per flat per day will be imposed until completion.

The Jaypee Group has been directed to provide ample space for car parking and refund the extra charges that were taken from buyers for parking slots, with 12% interest per annum from the date of the charge.

The order came close on the heels of protests by home buyers against celebrities for endorsing developers who have not completed projects on time. More than half of the real estate projects in India are currently delayed by over 12 months. Of this about 25% are delayed by over 36 months, according to property research firm Liases Foras.