The Supreme Court of India has issued a stern warning to Parsvnath Developers, emphasizing the need for immediate compliance with orders issued by the Haryana Real Estate Regulatory Authority (HRERA). The court’s directive comes after the developer repeatedly failed to adhere to these mandates. The bench, composed of Chief Justice of India (CJI) Surya Kant, and Justices Joymalya Bagchi and V Mohana, was hearing a petition from homebuyers of the Parsvnath Exotica project located in Sector 53, Gurugram.
Supreme Court’s Firm Stance
In a forthright admonition, CJI Surya Kant commented, “The entire nation has been misled by them. Should they fail to comply with the orders within a week, imprisonment will ensue. They have made a mockery of the system, akin to what transpired with Unitech. The system has been completely compromised.”
The remarks came during a hearing where Senior Advocate Priya Hingorani, representing the homebuyers, informed the court that she had anticipated the developer would present the required demand draft in court. However, the developer’s counsel stated there was “a plan” in place, to which the CJI responded, “No plan. First deposit, then talk. We operate under Article 142 and are not concerned with the Insolvency and Bankruptcy Code (IBC).”
Consequences for Non-compliance
The Supreme Court expressed its exasperation with the developer’s leadership, stating, “We recognize these unscrupulous business practices. There should be no misunderstanding regarding our order. Jail is the next step.”
Additionally, the bench noted that a compliance affidavit from the Haryana government was filed only the previous evening and was not attached to the case documents. The court instructed that this oversight be corrected immediately and demanded an explanation from the developer for its non-compliance with HRERA’s orders.
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Before enforcing the non-bailable warrants already issued against the developer, the court granted a final opportunity. It instructed that the full recoverable amount, along with an annual interest of 12 percent, be deposited with the Supreme Court registry within a week. The case is scheduled for another hearing next Monday, with the court maintaining a status quo until then.
Background of the Dispute
The legal proceedings stem from a complaint filed by homebuyers Rita Tikku, a cancer survivor, and Lokaish Tikku. They were allocated units in the Parsvnath Exotica project in 2006 and signed a flat buyer agreement in 2007. Despite settling the full sale consideration of approximately ₹1.78 crore, they never received possession, which was originally due in 2013.
In 2021, HRERA ruled in favor of the homebuyers, awarding them compensation. However, the developer neither contested the ruling nor complied with it. Arrest warrants issued by HRERA also went unexecuted, with reports of a bailiff being obstructed from entering the developer’s premises due to lack of police support.
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Earlier this month, the Supreme Court took serious note of the state’s inaction, ordering the immediate freezing of bank accounts belonging to Parsvnath Developers, Parsvnath Hessa Developers, and the personal accounts of their directors, alongside issuing bailable warrants against the company’s executives.
