SC freezes Parsvnath Developers’ bank accounts in Gurugram housing case

The Supreme Court on Monday ordered the freezing of the bank accounts of Parsvnath Developers and its directors, while issuing bailable warrants against the company's leadership over the prolonged delay in handing over homes to buyers in a Gurugram housing project.

A Bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V. Mohana passed the directions while hearing a plea filed by homebuyers Rita Tikku and Lokaish Tikku, who have been waiting for possession of their flats in the Parsvnath Exotica project in Gurugram's Sector 53 for nearly two decades.

Expressing serious concern over the matter, the Bench questioned the role of the Haryana administration and suggested there appeared to be a "collusion" between the state machinery and the developer. The court also criticised the apparent inaction of regulatory authorities in enforcing orders passed in favour of the homebuyers.

The petitioners, who were allotted residential units in 2006 and signed a flat buyer agreement in early 2007, told the court that they had paid the full sale consideration of around Rs 1.78 crore. Although possession was scheduled for 2013, the project remains incomplete.

The court noted that the Haryana Real Estate Regulatory Authority (HRERA) had in 2021 directed the developer to compensate the buyers. However, the company neither challenged those orders nor complied with them.

Observing that the execution of HRERA's directions had become ineffective, the Chief Justice said even arrest warrants issued by the authority had not been executed. The Bench was also informed that during one attempt to enforce the orders, a bailiff was allegedly prevented from entering the developer's premises and did not receive adequate assistance from the local police.

Taking note of these submissions, the court said it was satisfied that district authorities and the police had either failed to discharge their duties or acted in a manner that benefited the builder.

To prevent any further attempts to evade compliance, the Bench directed the immediate freezing of the bank accounts of Parsvnath Hessa Developers Pvt Ltd, Parsvnath Developers Ltd, as well as the personal bank accounts of their managing directors and directors.

The court also issued bailable warrants against the company's directors and warned that non-bailable warrants would follow if they failed to appear on the next date of hearing.

In addition, the Bench restrained the developer from creating any third-party rights or handing over possession of any units to third parties until further orders.

The Supreme Court directed the Haryana Chief Secretary, the Director General of Police, all district collectors and police commissioners in the state to ensure strict compliance with its directions and file affidavits before the court.

With PTI inputs