New Delhi: The Supreme Court on Wednesday directed Jaiprakash Associates to deposit Rs 50 lakh as part payment of compensation for delayed possession to 10 buyers of flats in its Kalypso Court project in Noida.

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A bench of Chief Justice Dipak Misra, Justice Amitava Roy, and Justice A.M. Khanwilkar said Rs 50 lakh would be given to Developers Township Property Owners Welfare Society, which in turn would disburse Rs five lakh each to 10 flat buyers.

This payment is an interim arrangement. The 10 flat buyers are society members.

Senior counsel Kapil Sibal appeared for Jaiprakash Associates and senior counsel Saikrishna Rajagopal appeared for the society representing 10 flat buyers.

On May 2, 2016, the National Consumer Disputes Redressal Commission (NCDRC) ordered Jaiprakash Associates to pay 12 per cent interest on money deposited by each of the 10 flat buyers from date of provisional allotment letters till handing over of actual possession of flats.

Besides, the NCDRC had directed Jaiprakash Associates to pay Rs 50,000 as cost to each of the 10 flat buyers.

However, the top court on July 15, 2016, stayed the NCDRC direction to pay 12 per cent interest. "... as far as the interest component is concerned, it shall remain stayed, subject to the petitioner depositing Rs 4 crore by July 29, 2016," the court said. 

Jaiprakash Associates had launched in 2007 the Kalypso Court project, which proposed to have 16 residential towers. It was proposed to be completed by 2011.