Supreme Court Criticizes Parsvnath and State Officials over Homebuyer Compensation Issues; Orders Account Freeze
The Supreme Court of India took significant action on Monday against Parsvnath Developers and state officials for failing to comply with orders from the Haryana Real Estate Regulatory Authority (HRERA). These orders mandated that the company either deliver the possession of flats to homebuyers or provide them with due compensation.
The bench, comprising Chief Justice of India (CJI) Surya Kant and Justices Joymalya Bagchi and V Mohana, expressed concern over the inability to enforce bailable warrants against the company and its directors. The Court, in response, issued new bailable warrants against Parsvnath Hessa Developers Pvt. Ltd., Parsvnath Developers Ltd., and their directors, summoning them to appear in court on July 17. Furthermore, the Court ordered the freezing of their bank accounts.
During the proceedings, CJI Kant highlighted systemic issues in implementing the Real Estate (Regulation and Development) Act (RERA). “We have previously remarked on RERA’s inefficacy, noting how it often falls dormant, leaving people to suffer,” he stated.
The case, brought forward by Rita Tikku and other homebuyers of the Parsvnath Exotica project in Gurugram’s Sector 53, revealed that despite making full payment nearly two decades ago, they had yet to receive their homes. Senior Advocate Priya Hingorani, representing the petitioners, noted the plight of one petitioner, a cancer survivor, and informed the Court of the builder’s current base in Chandigarh.
Chief Justice Kant questioned the non-execution of non-bailable warrants issued by HRERA, expressing disbelief at the lack of completion of any projects by the developers. “The High Court is also inundated with similar cases,” he remarked.
More Read
The Court documented the petitioners’ struggles, who, despite paying a total sale consideration of ₹1.78 crore for the residential units allotted in 2006, were denied possession, initially due by February 2013. Despite HRERA awarding compensation, the builder neither appealed the authority’s decision nor complied with it, leading to futile execution proceedings.
CJI Kant expressed concern over the ineffective enforcement mechanisms, noting that even when bailable warrants were issued, they could not be executed as the bailiff was denied entry. “The petitioners have been forced to approach us after exhausting all other options,” he added.
The Court emphasized that this issue extends beyond individual grievances, challenging the effectiveness of the RERA Act in securing compliance with its orders. It noted the defiance of HRERA’s orders by the developers and highlighted the Punjab and Haryana High Court’s April 2025 decision, which invalidated a government notification allowing HRERA to issue recovery certificates—a matter currently under review by the Supreme Court.
More Read
The Bench criticized the apparent collusion or negligence of local authorities, including Collectors and police, in enforcing the law. Consequently, the Court reiterated the issuance of bailable warrants and warned of non-bailable warrants if the directors fail to appear on July 17. Moreover, it ordered a freeze on the bank accounts of both companies and the personal accounts of their directors and officials.
Additionally, the Court directed compliance from the Chief Secretary of Haryana, all District Collectors, all Police Commissioners in Haryana, and all banks. The case is scheduled for further hearing on July 17.
