Supreme Court Rejects Parsvnath Proposal, Seeks Fresh Plan for Homebuyers

New Delhi: The Supreme Court has rejected a proposal submitted by Parsvnath Developers to resolve long-pending claims of homebuyers through the handover of flats or repayment of money with interest within a year. The court observed that the proposal appeared to delay rather than resolve the matter and directed the developer to submit a fresh, comprehensive plan covering the claims of allottees.

A bench headed by Chief Justice of India Surya Kant, along with Justices Joymalya Bagchi and V. Mohana, warned that if a satisfactory proposal addressing the claims of all homebuyers across Parsvnath and its subsidiary companies is not submitted, the court could appoint a High-Powered Committee to take responsibility for resolving the issues.

During the hearing, Parsvnath proposed to deliver possession of residential units within one year. The company's counsel told the court that the group has 24 housing projects involving around 27,000 dwelling units, of which approximately 24,000 have been sold and about 3,000 are yet to be offered possession.

The Supreme Court questioned the proposal in view of the prolonged delays faced by buyers. The court has asked the developer to prepare another plan that addresses the interests of allottees, including those seeking possession as well as those seeking refunds and compensation.

The proceedings involve claims relating to delayed possession, refunds, compensation and non-compliance with orders passed by the Haryana Real Estate Regulatory Authority (HRERA). The Supreme Court has been hearing more than 10 cases concerning Parsvnath Developers and its group entities.

The court has also taken note of cases in which homebuyers obtained money decrees but continued to face difficulties in securing the relief awarded to them.

One case referred to during the hearing involved Rita Tikku and Lokaish Tikku, who had invested ₹1.78 crore in the Parsvnath Exotica project in Sector 53, Gurugram. According to the court's observations, possession was originally scheduled within 36 months, with the due date falling in February 2013, but the buyers remained without possession or repayment for years.

The Supreme Court has indicated that a High-Powered Committee could be appointed if Parsvnath fails to present a plan that satisfactorily addresses the claims of allottees.

Reports on the proceedings said the proposed committee could potentially oversee matters such as project completion, refunds and other obligations arising from the homebuyers' claims. The court also discussed the possibility of requiring a substantial deposit before such intervention.

The hearing also involved a plea from the Insolvency Resolution Professional (IRP) appointed in proceedings involving Parsvnath Developers. The IRP sought permission to operate at least one of the company's frozen bank accounts, stating that around 3,000 claims from homebuyers had been received.

The Supreme Court declined the request at this stage. The court had earlier ordered the freezing of bank accounts belonging to the real estate company and its directors.

Parsvnath has been given another opportunity to submit a fresh proposal covering the claims of homebuyers across its companies and subsidiaries. The Supreme Court is expected to examine whether the revised plan provides concrete timelines and meaningful relief for affected allottees.

The proceedings underline the continuing challenges faced by homebuyers in long-delayed real estate projects and the importance of effective enforcement of regulatory and court orders.

For thousands of affected buyers, the next proposal from Parsvnath and the Supreme Court's response could determine the next phase of the long-running dispute.