Homebuyers of Jaypee Kalypso Court conduct ceremony to restart work on projectUpdated: Sep 19, 2020, 23:05 IST
Homebuyers of Jaypee Kalypso Court in Sector 128, along with officials of Uttar Pradesh-Real Estate Authority (UP-Rera), conducted a pooja ceremony on the project site on Saturday, thereby paving the way for the recommencement of the construction work on the project, which has been stuck for the past nine years.
This is the first time since RERA came into existence in 2016, that a homebuyers’ association has managed to take over the construction work of a real estate project after the developer failed to finish it.
Jaypee Kalypso Court is a part of debt-ridden Jaypee Group’s Wish Town project, along the Noida-Greater Noida Expressway. The project was launched in 2007 and was supposed to house 1,140 residential units. However, the developer, Jaiprakash Associate Limited, missed its 2010-2011 deadline, forcing the homebuyers’ association to approach UP-Rera in 2019.
“This is a first-of-its-kind initiative, in which the homebuyers have taken over an unfinished project. They have been suffering for a long time. We hope that homebuyers now get the possession of their residential units within the new stipulated timeline. There are many other viable projects in the national capital region (NCR) where this model can be replicated. The authority hopes that many more stalled projects can be now be completed in this manner if the homebuyers’ association and the developer are able to mutually work together,” Balvinder Kumar member of the UP-Rera.
The project has a total of eight towers, of which four have been completed and the rest are under construction. It has total of 304 units out of which 274 are sold out and the remaining are unsold. The 274 units are in towers 7, 8, 11, and 12. Under the provisions of Section 8 of the Rera Act, the authority can allow homebuyers to take over an unfinished housing project.
“Jaypee Kalypso Court is the first such project under UP-Rera, in which the buyers’ association has overtaken the delayed project to finish the remaining construction work. The original developer of the project, Jaiprakash Associate Limited, has been rehired as the contractor of the project and has been told to infuse ₹45 crore into the project and complete the remaining development work within a period of 18 months, including three months for mobilising resources,” said Rajive Kumar chairman of UP-Rera.
The authority will closely monitor the completion of this project through a project advisory and monitoring committee, under the chairmanship of Balvinder Kumar, who is a member UP-Rera. The committee will also consist of the CEO of Noida authority, the finance controller of UP-Rera, the technical advisor of UP- Rera, and others, said officials.
Homebuyers present at the ceremony said they were thankful to the authority for their support. “After waiting for so many years and approaching several government officials for redressal of our grievances, we finally reached out to UP-Rera. We are now hopeful that the project will be completed by next year. We are thankful to the UP-Rera for their support,” Dr. SK Dubey a homebuyer of Tower 7. “A whole decade has passed and now I am over 65 years of age. I am grateful to all the officials of Rera to make this happen,” said Rajender Kumar, a homebuyer of Tower 11.
The project requires a total of ₹103.3 crore to finish the remaining construction work. While the contractor has been asked to infuse ₹45 crore, the remaining money will come from the sale of the unsold units. The proposed completion date is January 2022, said UP-Rera officials.
Ajit Kumar, advisor, Jaypee Group, said, “We are committed to work under the supervision of UP-Rera, along with the homebuyers to ensure that the residential units are delivered. We have already provided ₹6 crore in an escrow account, while ₹6 crore more will soon be released. Buyers would also contribute to fund the remaining construction work. We will fulfil our commitment to complete the project on time.”