#RealtyNewsRoundUp: Realtors Wary Of Joint Development Projects Due To High GST Rate

Even as the Supreme Court upheld the Constitutional validity of the Goods and Services Tax (Compensation to States) Act on October 3, real estate developers are raising objection on the levy imposed on joint development agreements. Through a notification in January this year, the government imposed an 18 percent levy on joint development agreements, significantly pushing project cost for developers. 

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The  National Consumer Disputes Redressal Commission has said that homebuyers of Jaypee Infratech Ltd (JIL) can approach the forum against parent company Jaiprakash Associates Ltd (JAL) to seek compensation and possession. The forum, however, said buyers could not approach it against JIL at a time when insolvency proceedings against the company were underway. 

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The Supreme Court has allowed National Buildings Construction Corporation Ltd (NBCC) to float tenders for selecting a builder to complete the stalled projects of Amrapali Group and prepare a detailed project report for pending projects within 60 days.

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The Gautam Buddh Nagar Administration has booked directors of a building firm, among many others, under the Uttar Pradesh Gangsters Act. The builder in 2006 collected money for developing a building in Noida's Sector 16, but had not started construction yet. The administration is now attaching properties and "ill-gotten" wealth under Section 14 of the Gangsters Act.

Source: Media reports