nagesh0280

Hi guys,

Does anyone know what is the penalty clause for late construction, for Jaypee Klassic simplex apartments?

Thanks,
Nagesh

rohit_warren

Nagesh pl remove your email address from the post

nagesh0280

Done Sir! I didn't realize earlier that I had the option to subscribe for e-mail notifications...

nagesh0280

The following link says something interesting,

http://www.sebi.gov.in/dp/jaypeedraft.pdf

it says,

---------- START ----------
"35. We are subject to a penalty clause under our sale agreements entered into with our customers for any delay in the completion and handover of the project.

The sale agreements into which we enter, and will enter, with purchasers of our residential real estate development, including Jaypee Greens Klassic, Aman and Kosmos and other residential real estate developments that we may undertake in the future, include provisions requiring us to pay a penalty for
any delay in the completion and delivery of the project to the purchasers. The penalty is payable by us at a fixed rate for the default period. Accordingly for our integrated townships, the aggregate of all penalties in the event of delays may adversely impact the overall profitability of the project and therefore
adversely affect our business, financial condition and results of operations."
----------- END ----------------

but I haven't yet found out what is exact penalty clause for Klassic?

Any hints will be greatly appreciated!

cheers!!
--Nagesh

nagesh0280

here,

http://www.jaypeeinfratech.com/commu...a-23-04-10.pdf

it says,

--------- START -----------
"18. We are subject to a penalty clause under our sale agreements entered into with our customers for any delay in the completion and handover of the project.

The sale agreements into which we enter, and will enter, with purchasers of our residential real estate development, including Jaypee Greens Klassic, Aman, Kosmos and Kensington Park and other residential real estate developments that we may undertake in the future, include provisions requiring us to pay a penalty for any delay in the completion and delivery of the project to the purchasers. With respect to our Jaypee Greens Klassic, Aman, Kosmos and Kensington Park developments, the penalty provisions provide that if we fail to deliver possession of an apartment within 90 days following the stipulated delivery date for reasons that are not beyond our control, the purchaser shall be entitled to compensation for delay at the rate of Rs. 5 per square foot (Rs. 54 per square meter) of the super area (which includes an allocation for common facilities) of the premises for each month of delay. In addition, the penalty provision for our Jaypee Greens Kensington Park development provides that if we fail to deliver possession of a house or plot within 90 days following the stipulated delivery date for reasons that are not beyond our control, the purchaser shall be entitled to compensation for delay at the rate of Rs. 75 per square yard (Rs. 90 per square meter) of plot area for each month of delay. Accordingly, for our integrated townships, the aggregate of all penalties in the event of delays may adversely impact the overall profitability of the project and therefore adversely affect our business,
financial condition and results of operations."
----------- END -------------

rohit_warren

for most of the builders it is Rs 5 to 12 psf per month - however it may differ with the builders and projects

anuj_178

Rs 5 PSF per month.

Krazy Yuppie

Rs 5 per sq ft is too less considering the presental rental values.It should be atleast Rs 10 per sq ft per month.Even then builders are reluctunt to pay and try to attach so many ifs and buts.

anuj_178

can you pls elaborate what kind of ifs and buts?