Next step is jail: SC gives Parsvnath Developers final week to pay homebuyers
The Supreme Court gave Parsvnath Developers one final week to deposit homebuyers' dues with 12 per cent interest. It warned the builder and its directors that non-compliance would now lead to jail.
The Supreme Court on Monday gave Parsvnath Developers one week, as a final opportunity, to comply with orders passed in favour of homebuyers in Gurugram by depositing the entire recoverable amount with 12 per cent annual interest with the court registry. The court said failure to do so would lead to imprisonment.
A bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana made strong remarks against the real estate firm and its directors while hearing a petition by homebuyers Rita Tikku, a cancer survivor, and Lokaish Tikku, who said they had invested their life savings in the Parsvnath Exotica project in Gurugram.
The bench said, "The whole country has been duped by them. If you (real estate firm and its directors) do not comply with the orders within a week, they will be sent to jail. They are making a mockery of the system." It added, "The same thing that happened to the Unitech (directors) will happen to them (Parsvnath Developers). The entire system has been hijacked."
The court noted that the Haryana government had filed the status report sought earlier. It said, "The Haryana government states that a compliance affidavit has been filed. However, the same was filed last evening and not tagged with the paper books. Let it be done immediately." The bench also recorded that the respondent builder and its officials had entered appearance.
Directing the builder to explain its failure to follow Haryana Real Estate Regulatory Authority orders, the bench said, "Before the execution of non-bailable warrants, which is already issued, we grant the last opportunity to the builders to deposit the entire recoverable amount along with interest of 12 per cent per annum with the Supreme Court registry. Let it be deposited within a week. Post this case next Monday." The matter was then adjourned to July 27.
The bench said that under an earlier order, "Everything will continue to remain frozen." It did not accept the submission that other homebuyers were living in the same building where the petitioners had booked their home. "No plan. Deposit and then talk. We are under Article 142 (of the Constitution), we are not concerned with IBC (proceedings), insolvency etc Let there be no misunderstanding about our order. The next step is jail. That is all," the Chief Justice said.
Article 142 of the Constitution gives the Supreme Court the power to pass any decree or order necessary for doing complete justice in a pending matter. On July 13, the court had frozen the bank accounts of the real estate firm and its directors and issued bailable warrants against the company leadership after noting the 20-year struggle of senior citizens to secure possession of their homes.
At that stage, the bench had issued notices to the Haryana government, Parsvnath Hessa Developers Pvt Ltd through its managing director, Parsvnath Developers Pvt Ltd, the Gurugram district magistrate and Haryana's Department of Town and Country Planning. It had also asked the Haryana chief secretary, the director general of police, all district collectors and police commissioners to ensure strict compliance with its directions and file affidavits.
The court had further ordered that no third-party rights should be created and that possession of the flat should not be given to any third party in the meantime. It said the petition highlighted the plight of homebuyers who, despite paying the full sale consideration, had been deprived of their home for the past two decades.
Referring to the facts of the case, the bench noted that the petitioners, both senior citizens, were allotted residential units in Parsvnath Exotica in Sector 53, Gurugram, in 2006, followed by the builder-buyer agreement in early 2007. The sale consideration was Rs 1.78 crore and the flat was to be handed over within 36 months, with possession due in February 2013.
Despite paying the full amount, the petitioners found that construction was not even near completion. The court said they then approached Haryana RERA, which ordered compensation. Those orders were not challenged by the builder and had attained finality, but the directions continued to be ignored.
"Neither possession was issued nor compensation was paid. Execution proceedings have also become an exercise in futility. Multiple show-cause notices were also served to directors of the builder company," the bench said. It added that when nothing could be recovered, bailable warrants were issued against the builders by Haryana RERA.
The court also said, "We are perturbed to note that even the bailiff was not allowed to enter the builder company. The petitioners are still running from pillar to post. It is in these circumstances that petitioners have approached this court." It observed that, prima facie, the proceedings raised concerns that went beyond the present case.
The bench also noted that in April 2025, the Punjab and Haryana High Court struck down a state government notification that allowed Haryana RERA to issue recovery certificates. For now, the Supreme Court has given Parsvnath Developers one final week to deposit the full amount with interest, while keeping its earlier freezing order in place and warning that the next step would be jail.
The Supreme Court on Monday gave Parsvnath Developers one week, as a final opportunity, to comply with orders passed in favour of homebuyers in Gurugram by depositing the entire recoverable amount with 12 per cent annual interest with the court registry. The court said failure to do so would lead to imprisonment.
A bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana made strong remarks against the real estate firm and its directors while hearing a petition by homebuyers Rita Tikku, a cancer survivor, and Lokaish Tikku, who said they had invested their life savings in the Parsvnath Exotica project in Gurugram.
The bench said, "The whole country has been duped by them. If you (real estate firm and its directors) do not comply with the orders within a week, they will be sent to jail. They are making a mockery of the system." It added, "The same thing that happened to the Unitech (directors) will happen to them (Parsvnath Developers). The entire system has been hijacked."
The court noted that the Haryana government had filed the status report sought earlier. It said, "The Haryana government states that a compliance affidavit has been filed. However, the same was filed last evening and not tagged with the paper books. Let it be done immediately." The bench also recorded that the respondent builder and its officials had entered appearance.
Directing the builder to explain its failure to follow Haryana Real Estate Regulatory Authority orders, the bench said, "Before the execution of non-bailable warrants, which is already issued, we grant the last opportunity to the builders to deposit the entire recoverable amount along with interest of 12 per cent per annum with the Supreme Court registry. Let it be deposited within a week. Post this case next Monday." The matter was then adjourned to July 27.
The bench said that under an earlier order, "Everything will continue to remain frozen." It did not accept the submission that other homebuyers were living in the same building where the petitioners had booked their home. "No plan. Deposit and then talk. We are under Article 142 (of the Constitution), we are not concerned with IBC (proceedings), insolvency etc Let there be no misunderstanding about our order. The next step is jail. That is all," the Chief Justice said.
Article 142 of the Constitution gives the Supreme Court the power to pass any decree or order necessary for doing complete justice in a pending matter. On July 13, the court had frozen the bank accounts of the real estate firm and its directors and issued bailable warrants against the company leadership after noting the 20-year struggle of senior citizens to secure possession of their homes.
At that stage, the bench had issued notices to the Haryana government, Parsvnath Hessa Developers Pvt Ltd through its managing director, Parsvnath Developers Pvt Ltd, the Gurugram district magistrate and Haryana's Department of Town and Country Planning. It had also asked the Haryana chief secretary, the director general of police, all district collectors and police commissioners to ensure strict compliance with its directions and file affidavits.
The court had further ordered that no third-party rights should be created and that possession of the flat should not be given to any third party in the meantime. It said the petition highlighted the plight of homebuyers who, despite paying the full sale consideration, had been deprived of their home for the past two decades.
Referring to the facts of the case, the bench noted that the petitioners, both senior citizens, were allotted residential units in Parsvnath Exotica in Sector 53, Gurugram, in 2006, followed by the builder-buyer agreement in early 2007. The sale consideration was Rs 1.78 crore and the flat was to be handed over within 36 months, with possession due in February 2013.
Despite paying the full amount, the petitioners found that construction was not even near completion. The court said they then approached Haryana RERA, which ordered compensation. Those orders were not challenged by the builder and had attained finality, but the directions continued to be ignored.
"Neither possession was issued nor compensation was paid. Execution proceedings have also become an exercise in futility. Multiple show-cause notices were also served to directors of the builder company," the bench said. It added that when nothing could be recovered, bailable warrants were issued against the builders by Haryana RERA.
The court also said, "We are perturbed to note that even the bailiff was not allowed to enter the builder company. The petitioners are still running from pillar to post. It is in these circumstances that petitioners have approached this court." It observed that, prima facie, the proceedings raised concerns that went beyond the present case.
The bench also noted that in April 2025, the Punjab and Haryana High Court struck down a state government notification that allowed Haryana RERA to issue recovery certificates. For now, the Supreme Court has given Parsvnath Developers one final week to deposit the full amount with interest, while keeping its earlier freezing order in place and warning that the next step would be jail.
The Supreme Court on Monday gave Parsvnath Developers one week, as a final opportunity, to comply with orders passed in favour of homebuyers in Gurugram by depositing the entire recoverable amount with 12 per cent annual interest with the court registry. The court said failure to do so would lead to imprisonment.
A bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana made strong remarks against the real estate firm and its directors while hearing a petition by homebuyers Rita Tikku, a cancer survivor, and Lokaish Tikku, who said they had invested their life savings in the Parsvnath Exotica project in Gurugram.
The bench said, "The whole country has been duped by them. If you (real estate firm and its directors) do not comply with the orders within a week, they will be sent to jail. They are making a mockery of the system." It added, "The same thing that happened to the Unitech (directors) will happen to them (Parsvnath Developers). The entire system has been hijacked."
The court noted that the Haryana government had filed the status report sought earlier. It said, "The Haryana government states that a compliance affidavit has been filed. However, the same was filed last evening and not tagged with the paper books. Let it be done immediately." The bench also recorded that the respondent builder and its officials had entered appearance.
Directing the builder to explain its failure to follow Haryana Real Estate Regulatory Authority orders, the bench said, "Before the execution of non-bailable warrants, which is already issued, we grant the last opportunity to the builders to deposit the entire recoverable amount along with interest of 12 per cent per annum with the Supreme Court registry. Let it be deposited within a week. Post this case next Monday." The matter was then adjourned to July 27.
The bench said that under an earlier order, "Everything will continue to remain frozen." It did not accept the submission that other homebuyers were living in the same building where the petitioners had booked their home. "No plan. Deposit and then talk. We are under Article 142 (of the Constitution), we are not concerned with IBC (proceedings), insolvency etc Let there be no misunderstanding about our order. The next step is jail. That is all," the Chief Justice said.
Article 142 of the Constitution gives the Supreme Court the power to pass any decree or order necessary for doing complete justice in a pending matter. On July 13, the court had frozen the bank accounts of the real estate firm and its directors and issued bailable warrants against the company leadership after noting the 20-year struggle of senior citizens to secure possession of their homes.
At that stage, the bench had issued notices to the Haryana government, Parsvnath Hessa Developers Pvt Ltd through its managing director, Parsvnath Developers Pvt Ltd, the Gurugram district magistrate and Haryana's Department of Town and Country Planning. It had also asked the Haryana chief secretary, the director general of police, all district collectors and police commissioners to ensure strict compliance with its directions and file affidavits.
The court had further ordered that no third-party rights should be created and that possession of the flat should not be given to any third party in the meantime. It said the petition highlighted the plight of homebuyers who, despite paying the full sale consideration, had been deprived of their home for the past two decades.
Referring to the facts of the case, the bench noted that the petitioners, both senior citizens, were allotted residential units in Parsvnath Exotica in Sector 53, Gurugram, in 2006, followed by the builder-buyer agreement in early 2007. The sale consideration was Rs 1.78 crore and the flat was to be handed over within 36 months, with possession due in February 2013.
Despite paying the full amount, the petitioners found that construction was not even near completion. The court said they then approached Haryana RERA, which ordered compensation. Those orders were not challenged by the builder and had attained finality, but the directions continued to be ignored.
"Neither possession was issued nor compensation was paid. Execution proceedings have also become an exercise in futility. Multiple show-cause notices were also served to directors of the builder company," the bench said. It added that when nothing could be recovered, bailable warrants were issued against the builders by Haryana RERA.
The court also said, "We are perturbed to note that even the bailiff was not allowed to enter the builder company. The petitioners are still running from pillar to post. It is in these circumstances that petitioners have approached this court." It observed that, prima facie, the proceedings raised concerns that went beyond the present case.
The bench also noted that in April 2025, the Punjab and Haryana High Court struck down a state government notification that allowed Haryana RERA to issue recovery certificates. For now, the Supreme Court has given Parsvnath Developers one final week to deposit the full amount with interest, while keeping its earlier freezing order in place and warning that the next step would be jail.
