The Supreme Court on Tuesday rejected a resolution blueprint submitted by Parshvnath Developers to hand over possession or refund money with interest to aggrieved homebuyers, observing that the proposal appeared to be another tactic to delay proceedings and payments. A three-judge Bench headed by Chief Justice of India Surya Kant directed the real estate company to place a fresh plan capable of addressing every claim raised by purchasers.
The Warning of a High-Powered Committee
The Bench cautioned that if an acceptable proposal isn't presented, the court may be compelled to appoint a high-powered committee to assume charge of all associated obligations. The court made it clear that buyers' grievances encompass full refunds, compensation for handover delays, and compliance with directives issued by the Haryana Real Estate Regulatory Authority (RERA).
Emphasising that long-standing disputes cannot be cleared merely through deferred promises, the Bench insisted on a practical and binding mechanism. It warned that repeated delays would leave the judiciary with no alternative but to strip the firm of its responsibilities and hand management of the resolution process to an independent authority.
Apparent Collusion Between State Agencies and the Builder
During the hearing, the Bench took serious exception to the conduct of relevant state administrative bodies, remarking that while they were mandated to safeguard the interests of flat purchasers, they appeared prima facie to have acted hand in glove with the developer. The court also expressed displeasure over the company's defiance of orders passed by Haryana RERA, a quasi-judicial body.
The developer informed the court that out of 27,000 residential units planned across 24 projects, 24,000 had already been sold, while around 3,000 buyers were still awaiting possession. The company had offered to hand over these remaining units within a year, a timeline the Bench declined to accept as sufficient.
A Decade-Long Ordeal: The Sector 53 Gurugram Case
Underlining the genuine plight of purchasers, the Bench cited the case of Rita Tikku and Lokesh Tikku, who had put their life savings into a flat at Parshvnath Exotica in Sector 53, Gurugram. The property had a purchase price of ₹1.78 crore, with an agreement ensuring possession within 36 months, setting the delivery deadline for February 2013.
Despite paying the entire amount upfront, construction was not completed on schedule. By 2021, the couple had received neither possession of the flat nor a refund of their capital, a case that reflects the severe delays faced by consumers across the builder's residential schemes, and one the Supreme Court appears to be treating as emblematic of the broader problem it's now trying to resolve.
FAQs
Q1. Why did the Supreme Court reject Parshvnath Developers' resolution plan?
The court found the proposal to hand over possession or refund money with interest appeared to be another delay tactic, and directed the company to present a fresh, practical plan addressing every homebuyer claim.
Q2. How many homebuyers are still awaiting possession from Parshvnath Developers?
According to the developer, out of 27,000 planned residential units across 24 projects, around 3,000 buyers were still awaiting possession.
Q3. What example did the court cite to highlight buyers' hardships?
The court cited the case of Rita Tikku and Lokesh Tikku, who paid ₹1.78 crore for a flat in Sector 53, Gurugram, with possession promised by February 2013, but had received neither the flat nor a refund even by 2021.