At its board meeting on Thursday, the Noida Authority approved the recovery of time extension charges from Jaypee Infratech, the insolvency-ridden real estate company behind the long-delayed Wish Town in Noida, for failing to complete residential and commercial projects within the stipulated time. This means Jaypee buyers are likely to have to pay more.
While all developers paid time extension charges, this rule was earlier not applicable to Jaypee due to an agreement with Noida Authority. But board approval was sought to bring Jaypee within the ambit of time extension charges for the first time.
About 500 hectares of land in sectors 128, 129, 131, 133, 134 and 151 was provided by the Noida Authority to the Yamuna Expressway Industrial Development Authority (YEIDA) for construction between 2003 and 2011. This land was leased to Jaypee Infratech, according to provisions of the concession agreement.
For those Jaypee projects whose deadline has expired before March 31, 2022, the time extension fee will be calculated from April 1, 2022, officials said. For the company’s projects that did not have a time cap in the concession agreement, the Noida Authority has fixed a deadline of December 2025. In case construction work is not completed during this period, the time extension fee will apply for permission to be renewed.
For projects in which a sub-lease has been executed between Jaypee, YEIDA and a third party but a time cap has not been defined in the lease deed, the deadline will be fixed in line with prevailing policy. For properties to be sold by Jaypee in future, on which sublease is to be executed between the realtor, YEIDA and a third party, time will be given for construction and development till 2027.
Jaypee has developed and delivered around 12,000 units, while 20,000 units, including flats, are yet to be delivered, most of them in Wish Town.
