Jaypee Infratech’s shares came down by 3.75 per cent on Tuesday after reports of National Consumer Disputes Redressal Commission (NCDRC) directing them to hand over possession of Kalypso Court by July or pay a penalty of 12 per cent per annum. The shares closed at Rs 6.67 on BSE.
The project in Noida has been delayed by some years and buyers moved NCDRC against the developer. According to the order, the units have to be delivered by July 21, 2016, or it will have to pay a penalty of Rs 5,000 per flat per day till the project is completed.
According to reports, NCDRC directed the firm to pay interest of 12 per cent per annum with effect from 39 months from the date of respective provisional allotment letters, till the actual physical possession is handed over by the company.
The lawyer representing the buyers was not reachable despite several attempts. The officials of Jaypee were also not reachable. For the quarter ended December 2015, Jaypee Infratech reported net loss of Rs 20.69 crore against net profit of Rs 96.89 crore in the same quarter a year ago.
In a similar order last year, NCDRC asked Unitech to pay 12 per cent penalty to buyers in one of its project in Gurgaon. But, Unitech went to Supreme Court and the order was stayed.
This is one of the many instances of buyer’s activism where buyers have went against erring developers. Earlier, Supertech and DLF have borne the brunt of buyer’s anger after the firms went back on their commitments.