More than 300 homebuyers of the project Jaypee Kalypso Court (Phase – II) of Jaiprakash Associates Limited (JAL) will have a sigh of relief now as finally the construction work at the site of their project has resumed from today.
Hon’ble Member U.P. RERA Shri Balvinder Kumar, NCR Conciliation Consultant Shri R.D. Paliwal and various representatives & office bearers from the Association of Allottees attended the “Pooja Ceremony” which was organised today at the site by the Association.
It is pertinent to note that with a view to facilitate the completion of the project in a time-bound manner and to protect the interests of the allottees, earlier on 29th July 2020 the Authority had authorized the promoter, ‘Jaiprakash Associates Limited’, with the consent of the Progressive Welfare Society (Association of Allottees) of the project, ‘Jaypee Kalypso Court Phase II’ to undertake the completion of the remaining development of the project.
JAL will complete the project in about 12-15 months from the date of starting work in the four towers in line with the Pert Chart. The promoter has submitted details of project financials along with a plan for completion of the Project. Thereafter, AoA made its detailed submissions /observations on the information and completion plan submitted by the Promoter. In all, 274 units out of the total 304 sanctioned units in the towers 7, 8, 11, 12 have
been sold and 30 units are yet to be sold. Under the provisions of section 8 of the RERA Act, the Authority has devised an approach that is a win-win situation for both the homebuyers and the promoters.
By allowing joint development of delayed projects, wherein the promoter continues to be responsible for completing the project and delivering on its obligations, while the homebuyers through their collective are responsible to ensure the payments made by them are being deployed only on the project.
Hon’ble Chairman U.P. RERA Shri Rajive Kumar said, “The National Capital Region of Uttar Pradesh has seen its share of delays in real estate projects causing misery and suffering to thousands of homebuyers. Most often these delays are due to the promoters failing to adhere to their commitments given to the homebuyers. U.P. RERA has been successful in implementing this approach to resolve the disputes and revive a stalled project. The project ‘Jaypee Kalypso Court’ of JAL is the first such project in U.P. RERA that has passed through this approach and the promoter has now commenced construction work in the project from today.”
Hon’ble Member U.P. RERA Shri Balvinder Kumar expressing his satisfaction said,
“I am pleased to witness this ceremony today. We hope that homebuyers get their houses within the new stipulated timeline of this project. There are many viable projects in the NCR where this model can be replicated. The Authority is hoping that many more stalled projects can be completed if the AoA and promoter can mutually work together under this model towards the completion of the project.”
The Conciliation Consultant U.P. RERA Shri R.D. Paliwal held two rounds of
meetings respectively on 26th February 2020 and 4th March 2020 to formalize a mechanism for the completion of the development of the project as per understanding between the AoA and the Promoter.
Over the course of multiple conciliation meetings, the conciliator led the parties in identifying common ground and deciding the terms on which the project shall be completed.
On its part JAL committed to infuse Rs. 45 crores into the project and
complete the remaining development work with a period of 18 months, including three months for mobilizing resources.
The Authority will closely monitor the completion of this project through a ‘Project Advisory and Monitoring Committee’ under the chairmanship of Shri Balvinder Kumar Hon’ble member U.P. RERA along with CEO Noida, Finance Controller U.P. RERA, Technical Advisor U.P. RERA, Consultant Project Management Division U.P.
RERA Auditor appointed by the Authority, concerned Bank/Financial Institution and the AoA as members for monthly monitoring of the project.
The first meeting of the ‘Project Advisory & Monitoring Committee’ was held on 18th August 2020. Shri Manoj Gaur, Chairman and Managing Director of JAL attended the meeting and assured the homebuyers and the committee of his perseverance to complete the remaining development work in the project within the agreed upon timelines. He also committed to deposit an initial sum of Rs. 12 crores in the project escrow account. The representatives of the association of allottees were also pleased with the assurances given by Shri Gaur and the efficacy of the committee in ensuring compliance of the Authority’s orders.
The Authority will review the progress of the project on a quarterly basis. Further, a Chartered Account shall be appointed for the concurrent audit of the project to completion. The Authority on its website will shift the project to the special category of projects under Rehabilitation as per the provisions of Section 8 of the RERA Act.
The promoter shall continue to update the details of the project, including the quarterly progress report of the project at a stipulated time or as directed by the Authority.
The Conciliation Consultant U.P. RERA, Shri R.D. Paliwal said, “Most often there are differences between the association of allottees and the promoter of the project which lead to litigation and hinder any form of cooperation between them. This trust deficit needs to be resolved first before the project development can be taken up. The Conciliation Forum at U.P. RERA plays an important role in bringing both the parties onto a common platform and resolving the differences between them. Together, the parties mutually agree on the terms of the cooperation and present a mutually agreeable completion plan to the Authority’’.
Based on the Audit done by Currie & Brown, it was reported that 40 projects of Gautam Buddh Nagar district have been found as net positive surplus and are viable for completing the projects under this model in the future. This approach is ideally suited to such projects where the promoter is keen to complete the project but unable to do so either due to the expiry of registration of the project with U.P. RERA or due to differences with the allottees.
The Authority is planning to extend this approach to various other projects in the state where the projects are stalled either due an impasse between the promoter and the homebuyers or the completion date as declared by the promoter has lapsed including the one-year extension permissible under section 6 of the RERA Act. This process shall ensure a quick and lasting solution to the stuck / stalled projects and safeguarding the interests of the homebuyers.
U.P. RERA thus directs all such promoters or the association of allottees of the stuck/ stalled projects to approach the Authority towards resolving their disputes and completing the remaining development in their projects.
Here’s what the Allottees of four incomplete towers have to say about the
Shri Jayesh Patel, Allottee, Tower 11
“After numerous years of not getting our homes in Jaypee Kalypso Court Towers 7, 8, 11 & 12, in spite of approaching all possible means of redressal we reached out to U.P. RERA. The Authority has been extremely proactive – they set up a reconciliation committee to help restart the project. Last month we received an order to this effect & the construction is likely to commence shortly. Under the aegis of U.P. RERA we are hopeful of getting our homes by next year. We are thankful to the U.P. RERA team for their support.”
Dr. S.K. Dubey, Allottee, Tower 7
“U.P. RERA has done a fantastic job in addressing the problem faced by homebuyers of Kalypso Court towers 7, 8, 11 & 12 by being very proactive starting with the legal requirement of the formation of homebuyer association and arranging a meeting with JAL officials to find out an amicable and workable solution to kick start the construction work. I am an individual homebuyer as well part of the homebuyer association. I am really thankful to RERA for doing such a wonderful thing and hopefully by next year we will have our flats in our hands for which I have booked in 2010.
A whole decade has passed and now I am over 65 years of age. Grateful to all the officials of RERA particularly Chairman Shri Rajive Kumar. When the three of us met him the first time, he was very responsive and gave us hope and asked Mr. Paliwal to look after our case. The rest is history now. Looking forward”.
Shri Rajender Kumar, Allottee, Tower 11
“We expect the Project Advisory & Monitoring Committee of U.P. RERA to ensure that Jaypee meets its commitment to deliver the flats on time meeting the specifications & quality”.
The project was originally launched by JAL as a group-housing development of 15 towers, of which 7 towers (Towers – 1,2,3,4,14,15,16) were completed and handed over to allottees before the enactment of RERA Act, 2016. JAL registered the remaining 8 towers (Towers – 5,6,7,8,9,10,11,12) with U.P. RERA (UPRERAPRJ4695) with a proposed completion date of 30th June 2018. However, JAL could only complete 4 of the towers (Towers 5,6,9, 10) within the given time period. The project was already running way behind schedule and overshot the possession date committed to the homebuyers of the remaining towers.
Salient Features of Jaypee Kalypso Court (Phase – II)
● Total Towers – 8 (Completed -4, Under Construction – 4)
● Total Units in Under Construction Towers – 304
● Total Sold Units in Under Construction Towers – 274
● Total Unsold Units in Under Construction Towers – 30
● Total Cost of Completion – Rs. 103.3 crores
● Timeline for Completion – 18 months (including 3 months for mobilization)
● Commencement of Construction – 18th September 2020
● Proposed Completion of Construction – January 2022
Salient Features of U.P. RERA Authorization Order
● JAL to complete the balance development work within 18 months including 3 months for resource mobilization.
● JAL to open a separate account for the project in a scheduled bank.
● JAL to deposit all its contribution towards the project and all the money received from existing and prospective home buyers in this separate account.
● JAL to utilize the entire money deposited in the separate account only for the work relating to the construction and development of the project and/or any other expenditure directly related to the development, construction and completion of the project.
● JAL to deposit an upfront amount of Rs. 12 crores before collecting the balance receivables from the allottees.
● U.P. RERA to appoint a concurrent auditor for review of the separate account, sale of unsold units, appointment of contractor and monthly progress in the project.
● U.P. RERA to review the progress of the project on quarterly basis through the Project Advisory & monitoring Committee.