NEW DELHI: On Monday, the Supreme Court provided Parsvnath Developers with one final week to comply with orders favoring homebuyers in Gurugram. They must deposit the full amount along with 12% interest with the court registry.
The bench, including Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana, issued strong warnings to the real estate firm and its directors, stating that failure to comply could lead to imprisonment.
“The entire country has been misled,” the Chief Justice remarked, threatening jail time if they do not adhere to the orders within a week. He emphasized that they are treating the legal system with contempt.
The case arose from a petition by Rita Tikku, a cancer survivor, and Lokaish Tikku, who had invested their life savings in the ‘Parsvnath Exotica’ project in Gurugram’s Sector 53.
The bench noted that the Haryana government submitted the required status report but pointed out that it was not properly filed. They ordered immediate corrections.
The builders, along with their officials, have acknowledged their presence in court. The bench emphasized the need for them to explain their lack of compliance with HRERA (Haryana Real Estate Regulatory Authority) orders.
Before executing non-bailable warrants already issued, they granted this final chance for the builders to deposit the recoverable amount along with the specified interest.
“This will need to be done within a week. We will review the case again next Monday,” the bench ordered.
According to previous orders, “All actions will remain on hold.” The request that other homebuyers, residing in buildings similar to the petitioners’, be considered was dismissed. “Focus on the deposit first. We act under Article 142 of the Constitution and are not concerned with insolvency proceedings,” the Chief Justice stated.
He added, “There will be no ambiguities regarding our order. The next step is jail, period,” while postponing the matter to July 27.
Article 142 provides the Supreme Court with the authority to issue any order necessary for achieving “complete justice” in ongoing cases.
Previously, on July 13, the court froze the bank accounts of the real estate firm and issued bailable warrants against its leadership, acknowledging the two-decade struggle faced by senior citizens seeking possession of their homes.
In response to the plea, the bench had also notified the state government, Parsvnath Hessa Developers Pvt Ltd through its managing director, and the Gurugram district magistrate, among others, to ensure compliance with the directives.
It mandated that no rights be granted to third parties, nor shall possession of flats be handed over to any newcomers during this period.
The petition reveals the ongoing plight of homebuyers who, despite having paid their full purchase price, remain without their homes for the last twenty years.
The petitioners, senior citizens, had invested in Parsvnath Exotica back in 2006, signing a builder-buyer agreement in early 2007.
The initial price was Rs 1.78 crore, with expected possession in 36 months, due by February 2013. However, despite full payment, construction is far from completion.
After engaging with Haryana RERA, they were promised compensation, which the builder failed to contest, leading to finality. However, the builders continued to disregard these rulings.
Ultimately, as recovery proved elusive, bailable warrants were issued against the builders by the Haryana RERA.
It was noted with concern that even the bailiff was denied entry to the builder’s premises, leaving petitioners in a seemingly endless cycle of appeals. This prompted them to seek intervention from the Supreme Court.
The bench indicated that these proceedings raise wider issues that extend beyond the current case.
The Punjab and Haryana High Court recently annulled a state government notification allowing Haryana RERA to issue recovery certificates.
