'Homebuyers' 20 Year Plight!' : Supreme Court Issues Warrants To Haryana Builder's Directors; Flags State Inaction

The Supreme Court on Monday passed a series of coercive directions against Haryana-based Parsvnath Developers over its failure to comply with orders of the Haryana Real Estate Regulatory Authority (HRERA).The Court directed the freezing of the bank accounts of the directors of Parsvnath Hessa Developers Ltd. and Parsvnath Developers Ltd., issuing warrants against them, and observing that Haryana authorities appeared to be either colluding with the builder or had failed to discharge their statutory duties.The Court warned that non-bailable warrants will be issued if the directors failed to appear on the next date.A Bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice V Mohana was hearing writ petitions filed by senior citizen homebuyers of the Parsvnath Exotica project in Gurugram, who have been waiting for possession of their flats despite having paid the entire sale consideration nearly two decades ago.Describing the matter as one highlighting the "plight of homebuyers", the Court observed:"These writ petitions highlight the plight of homebuyers who, despite paying the entire sale consideration more than two decades ago, continue to be deprived of the homes promised to them."The petitioners were provisionally allotted flats in 2006 and entered into flat buyer agreements in early 2007. Each flat was priced at over ₹1 crore, and possession was contractually due in 2013. However, when the buyers visited the site, they found that construction was far from complete.The homebuyers approached HRERA in 2021, which passed orders in their favour directing the builder to pay compensation. The Supreme Court noted that the builder never challenged those orders, allowing them to attain finality."Builders continue to defy and disregard directions issued by HRERA. Consequently, neither possession was issued nor compensation paid," the Court observed.When the builders failed to comply, the homebuyers initiated execution proceedings before HRERA in 2022. The Court noted that despite repeated efforts, the Gurugram Collector could not recover "a single penny" from the developers.The Bench recorded that warrants had been issued against the directors of the respondent companies to secure their presence before HRERA. It also noted serious lapses in enforcing those warrants."We are perturbed to note that in one case, the bailiff was not allowed to enter the companies, necessitating police assistance. However, in the absence of effective assistance, even those directions were not complied with. No coercive measure could be implemented, and thus petitioners are still running from pillar to post seeking execution of the 2021-22 orders in their favour," the Court observed.Taking note of the continued non-compliance, the Supreme Court directed the freezing of the bank accounts of the directors of Parsvnath Hessa Developers Ltd. and Parsvnath Developers Ltd. It also restrained the respondents from creating any third-party rights in the project or handing over possession of any units until further orders.The Court further directed the Chief Secretary of Haryana, the Director General of Police, all Collectors, all Commissioners, and all banks concerned to ensure strict compliance with its directions and file compliance affidavits before the Court.The Bench said the case exposed systemic deficiencies in the implementation of the Real Estate (Regulation and Development) Act, observing that the effectiveness of the statutory mechanism depended on the enforcement of orders passed under it."Prima facie, we find that these proceedings raise concerns extending well beyond the present petitioners. The Real Estate (Regulation and Development) Act provides a statutory mechanism to protect the interests of homebuyers. However, these cases reveal that the efficacy of such mechanism depends on the ability of the law to secure compliance with orders passed," the Court observed.The Court further observed that the respondent-builders had "prima facie displayed brazen disregard" for HRERA's orders, which continue to remain in force. It said the builders remain obligated to hand over completed flats and pay the amounts due under the authority's orders.Significantly, the Court also made adverse prima facie observations against the State machinery."We are prima facie further satisfied that State authorities, especially the Collector and local police, are either colluding with the builder or have failed to discharge their official responsibilities," the Bench observed.Case : RITA TIKKU Vs STATE OF HARYANA THROUGH ITS CHIEF SECRETARY | W.P.(C) No. 640/2026

'Homebuyers' 20 Year Plight!' : Supreme Court Issues Warrants To Haryana Builder's Directors; Flags State Inaction

Debby Jain

The Court questioned the builder for blocking the execution of RERA order, and wondered if the statutory mechanism was effective.

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Debby Jain

'Homebuyers' 20 Year Plight!' : Supreme Court Issues Warrants To Haryana Builder's Directors; Flags State Inaction

Debby Jain

The Court questioned the builder for blocking the execution of RERA order, and wondered if the statutory mechanism was effective.

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INR 1099+GST

Tags

Debby Jain

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