The Supreme Court of India has taken stern action against a Gurugram-based builder and its directors by freezing their bank accounts due to non-compliance with the Haryana Real Estate Regulatory Authority (HRERA) orders. This significant move came as the court examined a plea by homebuyers of the Parsvnath Exotica project in Sector 53, Gurugram, who have been waiting nearly two decades to receive their promised homes.
Case Background and Legal Proceedings
The bench, led by Chief Justice of India Surya Kant, along with Justices Joymalya Bagchi and Mohana, heard the petition filed by Rita Tikku and other homebuyers. The petitioners claimed that despite having paid the full sale consideration, they have not received possession of their homes, as promised by the builder back in 2006.
In their arguments, Senior Advocate Priya Hingorani, representing the petitioners, highlighted the plight of one petitioner who is a cancer survivor. The court was informed that the builder had relocated to Chandigarh, raising concerns about their accountability.
HRERA Orders and Compliance Issues
The Supreme Court questioned the inaction on non-bailable warrants issued by HRERA against the builder, emphasizing the need for strict enforcement of regulatory orders. The bench noted that despite HRERA awarding compensation to the petitioners, the builder has neither challenged these orders nor complied with them. This non-compliance has left the homebuyers without possession or compensation, despite multiple directives issued by HRERA.
Judicial Observations and Directives
Expressing concern over the broader implications of the case, Chief Justice Surya Kant remarked on the inefficacy of the RERA Act if its orders are not implemented. The bench observed that the issue reflects a systemic problem where builders blatantly disregard regulatory mandates, raising doubts about the effectiveness of legal protections for homebuyers.
More Read
Furthermore, the court noted a previous judgment by the Punjab and Haryana High Court that had struck down a government notification empowering HRERA to issue recovery certificates. This decision is currently under appeal in the Supreme Court.
Immediate Actions Ordered by the Supreme Court
The Supreme Court directed the issuance of bailable warrants against the builder and its directors, mandating their appearance on July 17. The court cautioned that failure to comply would result in non-bailable warrants. Additionally, the court stayed the creation of third-party rights concerning the Parsvnath Exotica project and ordered the freezing of the builder’s and directors’ bank accounts. This decision was communicated to the Chief Secretary of Haryana, all District Collectors, Police Commissioners, and banks to ensure compliance.
The case will be reviewed further in the next hearing scheduled for July 17, as the Supreme Court continues to address the grievances of the homebuyers who have been waiting for justice for nearly two decades.
