PropertyChek congratulates the NCDRC for making a landmark judgment that
Imposes a 12% annual penalty on Jaypee group for delaying possession of Kalypso Court project in Noida
Directs the company to hand over possession of apartments by July 21, 2016 or face a penalty of Rs. 5,000/- per flat per day until the project is completed
Directs company to provide adequate parking space and refund additional monies collected for parking spots (again with a 12% penalty per annum)
Directs the builder to only charge buyers for any increased in super built up area after the construction if they have prior consent from the buyer
This judgment was provided in just 5 months. This is the speed at which our authorities need to function! We at PropertyChek hail the decision and the amount of time it took to get to the decision!
I am sure we will hear more about this project in the coming months since the project is nine years delayed (launched in 2007) and has work pending on 9 of the 16 towers that were supposed to be delivered by 2011.
PropertyChek advises all buyer to conduct thorough analysis and background research on the builder before making a decision; specifically checking builder’s earlier projects for:
- Construction delays
- Illegal construction
- Construction quality
- Balance sheet / financial issues (many times, this may not be possible)
In addition, buyers need to confirm the builder has Title and Approvals to undertake construction for the upcoming project. One reason for these developer delays in lack of title and / or lack of construction approvals.
We, at PropertyChek, conduct legal due diligence of properties, where we check the property title by verifying the actual government record in the registrar’s office to ensure the seller (whether builder or individual seller) has an authentic, clean title.