2 hrs ago
Supreme Court rejects Parsvnath proposal, demands stronger homebuyer relief
Parsvnath Developers has many customers who paid for homes but are still waiting for them.
The company gave the Supreme Court a plan for handing over homes or returning money.
The judges said the plan could delay the customers’ cases instead of solving them.
They allowed the company to submit a different plan.
The new plan must address all homebuyers’ claims, including refunds and compensation for delays.
If it does not, the court may appoint a powerful committee to manage the matter.
The court also kept the company’s bank accounts frozen.
One example involved buyers who paid for a Gurugram flat but waited many years without receiving it or getting their money back.
The Supreme Court rejected Parsvnath Developers’ proposal on flat possession and repayment.
The bench said the proposal appeared designed to delay possession and repayment to homebuyers.
Parsvnath was allowed to submit a fresh proposal covering all affected allottees and homebuyers.
The court warned it could appoint a high-powered committee if the new proposal fails to satisfy claims.
The bench also declined an Insolvency Resolution Professional’s request to operate a frozen bank account.
- Who
- The Supreme Court, Parsvnath Developers, its directors, an Insolvency Resolution Professional, and affected homebuyers.
- What
- The court rejected Parsvnath’s proposal for delivering flats or repaying homebuyers and permitted a fresh proposal.
- Where
- The proceedings took place before the Supreme Court; one cited project was Parsvnath Exotica in Sector 53, Gurugram.
- When
- The report was dated September 8; the court had previously frozen the company’s bank accounts on July 13.
- Why
- The bench said the proposal would delay possession and repayment and required a plan addressing all homebuyers’ claims.
Supreme Court and homebuyer concerns
Parsvnath Developers’ proposal
Proposed resolution
Supreme Court and homebuyer concerns
The bench said the proposal was another device to delay possession and repayment and did not adequately resolve homebuyers’ claims.
Parsvnath Developers’ proposal
Parsvnath proposed delivering dwelling units within one year or repaying money with interest, according to the report.
Management of company funds
Supreme Court and homebuyer concerns
The court refused to permit use of a frozen bank account and said it could appoint a high-powered committee to take over responsibilities.
Parsvnath Developers’ proposal
The Insolvency Resolution Professional asked to operate at least one frozen account to run the firm’s affairs, citing 3,000 homebuyer claims.
Regulatory enforcement
Supreme Court and homebuyer concerns
The bench criticized Haryana authorities for allegedly failing to protect homebuyers and enforce Haryana RERA orders.
Parsvnath Developers’ proposal
The report does not provide a response from Haryana authorities or Parsvnath to that criticism.
Key facts
- Court bench
- Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana
- Parsvnath projects
- The company said its group had 24 housing projects.
- Units
- The company said it was to build 27,000 dwelling units; 24,000 had been sold and about 3,000 had not been offered for possession.
- Homebuyer claims
- Claims include refunds, compensation for delayed possession, and non-execution of Haryana RERA orders.
- Insolvency claims
- The Insolvency Resolution Professional said 3,000 claims had been received from homebuyers.
- Cited case
- Rita Tikku and Lokaish Tikku paid Rs 1.78 crore for a Parsvnath Exotica flat due for possession in February 2013.
- Court action
- The bank accounts of the real estate firm and its directors were frozen on July 13, and bailable warrants were issued against the company’s leadership.
Quotes
Supreme Court bench
A three-judge Supreme Court bench headed by Chief Justice Surya Kant
“We are satisfied that the proposal is nothing but another device to delay the compliance of possession of (flats) and delay the repayment of monies (to homebuyers.”
theprint.in
“You deposit Rs 500 crore with the apex court registry. We will appoint a high-powered committee (HPC) and then we will see.”
theprint.in
Sources
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