NEW DELHI: In a strong condemnation of the “blatant negligence” exhibited by Parsvnath Developers, a Haryana-based real estate firm, the Supreme Court on Monday froze the bank accounts of the company and its directors, issuing bailable warrants against the leadership due to a two-decade-long struggle faced by senior citizens in securing their homes.
A bench led by Chief Justice of India Surya Kant criticized Haryana authorities for their inability to implement orders from the Haryana Real Estate Regulatory Authority (HRERA) against the firm, highlighting severe concerns about the Real Estate (Regulation and Development) Act, 2016’s effectiveness in providing relief to homebuyers.
The bench, including Justices Joymalya Bagchi and V Mohana, expressed deep concern about the regulatory authorities’ inaction, suggesting possible “collusion” between the state machinery and the builder.
To prevent the builders from evading justice, the bench ordered the immediate freezing of bank accounts belonging to Parsvnath Hessa Developers Pvt Ltd, Parsvnath Developers Ltd, and their managing directors and directors.
“The bank accounts of Respondent numbers 2 and 3, along with personal accounts of MDs/Directors/Officers, will remain frozen until further orders. As these builders primarily operate in Haryana, we direct the Chief Secretary, the Director General of Police, all collectors, commissioners, and police superintendents, as well as all banks, to adhere to these instructions and file compliance affidavits,” the bench stated.
“We are preliminarily satisfied that state authorities, particularly the Collector and local police, are either collaborating with the builder or failing to fulfill their official duties,” the CJI noted.
This case originated from a petition by Rita Tikku, a cancer survivor, and Lokaish Tikku, who invested their life savings in the “Parsvnath Exotica” project in Sector 53, Gurugram.
Taking into account the petition, the bench issued notifications to the state government, Parsvnath Hessa Developers Pvt Ltd through its managing director, Parsvnath Developers Pvt Ltd, the district magistrate of Gurugram, and Haryana’s Department of Town and Country Planning. It instructed the Haryana Chief Secretary, the DGP, all district collectors, and police commissioners to ensure rigorous compliance and report back.
“In the meantime, bailable warrants have been issued against the second and third respondents (Parsvnath Hessa Developers Pvt Ltd and Parsvnath Developers Pvt Ltd) and their directors. If they fail to appear, this court may have no option but to issue non-bailable warrants (NBWs) to secure their presence,” the bench ruled.
Moreover, the bench ordered that no third-party rights should be created, nor should possession of the flat be granted to any third party at this stage.
During the hearing, the CJI remarked that “not a single project has been completed by them.”
“Why are the non-bailable warrants issued by the Haryana RERA not being enforced? The responsible individuals should have been arrested. The High Court is also inundated with cases,” it added.
The bench highlighted the plight of homebuyers who have been deprived of their homes for two decades despite paying the full sale amount.
“The petitioners, being senior citizens, invested in Parsvnath Exotica in Sector 53 Gurugram. They were allotted residential units in 2006, followed by the Builder-Buyer Agreement (BBA) in early 2007.
The total sale consideration was ₹1.78 crore, with possession initially due in 36 months, or February 2013,” it stated.
Despite settling the full payment, the petitioners found the construction far from completion.
The bench mentioned that the petitioners approached Haryana RERA, which ruled in their favor for compensation. These decisions went unchallenged by the builder and were finalized, yet the builders continued to ignore the orders.
“No possession was granted, nor was compensation paid. Execution proceedings turned futile, and multiple show-cause notices were issued to the directors of the builder company,” the bench noted.
When all recovery attempts failed, bailable warrants were issued by Haryana RERA against the builders.
“It is concerning to note that even the bailiff (responsible for executing the RERA orders) was denied entry into the builder’s premises. The petitioners continue to face numerous obstacles. Under these circumstances, the petitioners turned to this court,” it added.
The bench affirmed that these proceedings raise broader concerns beyond this specific case.
“The RERA Act establishes a legal framework to safeguard homebuyers’ interests, but these cases demonstrate that the statute’s effectiveness hinges on enforcing the orders issued under it. The builders have openly defied instructions from Haryana RERA,” it concluded.
The bench also referenced that the Punjab and Haryana High Court, in April 2025, annulled a state government notification that authorized Haryana RERA to issue recovery certificates. The petitioners were assigned residential units in 2006, and a flat buyer agreement was signed in early 2007.
