The Supreme Court has dismissed a proposal from Parsvnath Developers to settle homebuyers’ grievances by disbursing flats or monetary compensation. The court deemed this approach another method of procrastinating the legal process. A bench led by Chief Justice Surya Kant, with Justices Joymalya Bagchi and V Mohana, has given the developer one more chance to submit a new proposal that addresses the claims of all allottees and homebuyers associated with the company and its subsidiaries.

The court issued a warning that failure to present a comprehensive plan could result in the appointment of a High-Powered Committee to manage these claims. These claims broadly include requests for refunds, compensation for delayed property possession, and enforcement of orders previously issued by Haryana’s Real Estate Regulatory Authority (RERA).

Rejection of Proposed One-Year Possession Plan

The court underscored the significant hardship faced by the homebuyers and urged Parsvnath to devise a proposal that could effectively address their demands. Additionally, Chief Justice Surya Kant proposed that Parsvnath deposit Rs 500 crore with the Supreme Court registry. Following this, the court could consider the possibility of establishing a High-Powered Committee to manage the situation.

Homebuyers Await Relief Despite Legal Decrees

The bench pointed out that although several homebuyers already possess monetary decrees in their favour, they continue to face challenges in receiving the benefits. The Chief Justice noted that many homebuyers are in a perpetual state of struggle, frequently moving from one facility to another for resolution. The court mentioned that even if a Central Bureau of Investigation (CBI) inquiry were instigated, it would not necessarily aid these individuals.

The Supreme Court has previously instructed Parsvnath and its executives to submit a detailed status report regarding the various legal cases filed by homebuyers against them and to clarify the current status of these proceedings. At present, the court is examining more than ten cases against the builder, reflecting a broader context of consumer dissatisfaction.

During the hearing, the court drew attention to the case of Rita Tikku, a cancer survivor, and her husband Lokaish, who have invested their life savings in the Parsvnath Exotica project located in Gurugram. Despite having paid Rs 1.78 crore for their flat, which was expected to be ready within 36 months, they have not received possession, and construction remains unfinished.

The court noted that as of 2021, the couple had neither secured possession of their home nor been reimbursed. This situation has resulted in significant delays, leaving the couple deprived of their home for an extended period.

Additionally, the Supreme Court denied a request from the Insolvency Resolution Professional (IRP) appointed for Parsvnath’s insolvency proceedings to access one of the company’s frozen bank accounts. The IRP sought this permission to address approximately 3,000 claims made by homebuyers. The court questioned the efficacy of the insolvency management process, emphasising that if it were functioning correctly, such matters would not be reaching the Supreme Court.

In conjunction with these proceedings, the Supreme Court critiqued the involvement of Haryana state authorities, suggesting a lack of protective measures for homebuyers. The bench noted allegations of collusion between the authorities and the builder, which had failed to comply with directives issued by Haryana RERA. The court’s earlier decisions have frozen Parsvnath’s bank accounts and issued bailable warrants against company leaders, highlighting the enduring struggle of senior citizens to gain the housing they are entitled to.

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