In a stern warning to Haryana-based Parsvnath Developers and its directors, the Supreme Court granted the real estate company one final week to comply with orders passed in favour of home-buyers in its Gurugram housing project, making it clear that failure to do so would lead to imprisonment.
A bench of chief justice Surya Kant and justice Joymalya Bagchi and justice V Mohana directed the builder to deposit the entire recoverable amount, along with 12% annual interest, with the registry of the Supreme Court within one week before the matter is taken up again on 27 July 2026.
Making strong observations during the hearing, the chief justice said, "The same thing that happened to the Unitech (directors) will happen to them (Parsvnath Developers). The entire system has been hijacked."
The bench also left no room for ambiguity over the consequences of non-compliance.
"Let there be no misunderstanding about our order. The next step is jail. That is all," the chief justice remarked.
The Court noted that the builder and its officials had appeared before it and sought an explanation for their continued failure to comply with orders passed by the Haryana real estate regulatory authority (HRERA).
Before the execution of non-bailable warrants already issued in the matter, the bench decided to extend what it described as the final opportunity to the developer to deposit the entire recoverable amount with 12% interest. It also directed that its earlier order freezing assets would continue to remain in force.
During the hearing, counsel appearing for Parsvnath Developers argued that the company was undergoing insolvency proceedings.
The Supreme Court, however, refused to allow insolvency proceedings to become a shield against compliance with its orders.
"No plan. Deposit and then talk. We are under Article 142, we are not concerned with IBC, insolvency, etc.," the bench observed, making it clear that payment to affected home-buyers would take precedence.
The chief justice also indicated that the Court would not entertain any alternative proposals until the recoverable amount was deposited.
The proceedings arise from a petition filed by Rita Tikku, a cancer survivor, and Lokaish Tikku, who invested their life savings in the Parsvnath Exotica project in Sector 53, Gurugram. Despite paying the full sale consideration, they have been waiting for possession of their flat for nearly two decades.
According to the Court's earlier observations, the petitioners were allotted a residential unit in 2006 and entered into a builder-buyer agreement in early 2007. The flat, priced at ₹1.78 crore, was to be delivered within 36 months, with possession due in February 2013. However, construction remained incomplete despite full payment by the buyers.
The bench had also noted that although HRERA directed the builder to compensate the homebuyers, those orders were never challenged and attained finality. Yet, the developer neither handed over possession nor paid compensation, rendering execution proceedings ineffective.
The apex court observed that the petitioners had been forced to move from one forum to another despite obtaining favourable orders.
It noted that even court officials attempting to execute HRERA's orders had allegedly been prevented from entering the builder's premises, while multiple notices and bailable warrants had failed to secure compliance.
Earlier this month, the Supreme Court froze the bank accounts of Parsvnath Developers and its directors and issued bailable warrants against the company's leadership after taking note of the prolonged hardship faced by homebuyers awaiting possession for around 20 years. The Court also directed that no third-party rights be created in respect of the flats and sought compliance affidavits from senior Haryana government officials and law enforcement authorities.
During the hearing, the Haryana government informed the Court that compliance affidavits had been filed, although they had not yet been placed on record. The bench directed that the documents be immediately tagged to the case papers.
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