SC orders Jaiprakash Associates to pay Rs 50 lakh to 10 home buyers of Kalypso project

The Supreme Court on Wednesday ordered realty firm Jaiprakash Associates to pay Rs 50 lakh as an interim relief to 10 home buyers of its Kalypso Court project along the Noida-Greater Noida Expressway. The builder has been asked to pay Rs 50 lakh to the Developers Township Property Owners Welfare Society that represents 10 home buyers in the case, which will be then paid to them after. The Kalypso Court project, launched in 2007 by Jaiprakash Associates, was supposed to have 16 towers and be completed by 2011. However, the work is still pending in most towers. Home buyers are seeking compensation adequate enough to compensate for their loss caused on account of delay in delivery of over 5 years. The buyers are also seeking reversal of unlawful demands made by the builder on account of alleged increase in super area and car parking. The hearing in the case has been listed for a later date, which has not been fixed now. The National Consumer Disputes Redressal Commission (NCDRC) in May last year had directed Jaiprakash Associates to pay 12% interest for the delay and to complete the project by July 21, failing which it will have to pay Rs 5,000 per day per home as a penalty till it hands over homes to the buyers. However, the Supreme Court in July last year stayed the NCDRC order, and asked the builder to deposit Rs 4 crore with the court within two weeks, which it complied with. The court, however, did not stay two other parts of the NCDRC judgment that said Jaypee cannot charge for car parking and also for increase in super area of an apartment post construction unless it had prior consent of the buyer.