Jaypee Infratech homebuyers can sue JAL too: NCDRC


National Consumer Disputes Redressal Commission (NCDRC), the apex consumer quasi-judicial commission, has ordered that homebuyers of Jaypee Infratech’s projects can approach consumer forums against its parent company Jaiprakash Associates Ltd (JAL) to seek compensation and possession.


JAL’s argument that it is only acting as an agent of JIL for marketing, construction and sale of flats and plots, were turned down by the court. 


While pronouncing the order, single-member bench of V K Jain, however, said that the buyers cannot approach the consumer forums against JIL at this stage when the insolvency proceedings against it was underway.


A large number of flat buyers had approached National Consumer Disputes Redressal Commission (NCDRC) seeking possession with compensation or refund with compensation from JAL and JIL. 


JAL had argued that the leasehold rights on the land continued to vest with JIL. But the commission referred to the official allotment letters issued to flat buyers to point out how JAL was not just an agent of JIL. “Admittedly, JAL is the holding company of JIL,” the forum pointed out. 


Written by The Realty Paper

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