Supreme Court Freezes Parsvnath Bank Accounts Over RERA Case

• Supreme Court freezes bank accounts of two Parsvnath subsidiaries.
• Buyers have waited over two decades for possession and compensation.
• Court questions Haryana authorities over poor enforcement of RERA orders.

New Delhi: The Supreme Court ordered the freezing of bank accounts belonging to Parsvnath Hessa Developers Ltd and Parsvnath Developers Limited, along with action against their managing directors, directors and officers.The court found that the developer had failed to comply with Haryana Real Estate Regulatory Authority (HRERA) orders directing it to compensate homebuyers for long-delayed flats in the Parsvnath Exotica project in Gurugram.

The move is significant as it strengthens judicial action against developers who ignore RERA directives and reinforces homebuyers’ rights.

The case relates to senior citizens who booked flats in the Parsvnath Exotica project on Golf Course Road, Gurugram, more than 20 years ago. They had paid the full amount, with possession originally promised in 2013. However, construction remained incomplete even after repeated delays. In 2021, HRERA directed the developer to pay compensation of more than Rs 1.5 crore to each buyer.

Despite not challenging the order, the company neither paid the compensation nor handed over possession, prompting the buyers to approach the Supreme Court.

A three-judge bench led by Chief Justice of India Surya Kant observed that the developer had shown complete disregard for HRERA’s orders. The court remarked that despite recovery certificates issued by the authority, the buyers had not received “a single penny”.

It also expressed concern over the apparent failure of the Gurugram administration and Haryana Police to enforce the recovery process, stating that the authorities had either failed in their duties or acted in a manner that benefited the developer. The matter has been listed for further hearing on July 17.

Apart from freezing the companies’ bank accounts, the Supreme Court has restrained the developer from creating third-party rights or handing over possession of any units in the project until further orders. The judgment also raises larger questions about the effectiveness of RERA enforcement across the country.

The court noted that while RERA was created to protect homebuyers, its purpose is defeated if developers can ignore its orders without facing timely consequences.

The Supreme Court has directed the Haryana Chief Secretary, Director General of Police, and concerned Police Commissioners to ensure strict implementation of its directions. It also issued bailable warrants against the company’s directors. The next hearing is scheduled for July 17, when the court is expected to review compliance and consider further action against the developer and officials responsible for enforcing RERA’s orders.

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