The Supreme Court of India has given real estate firm Parsvnath Developers a final one-week ultimatum to deposit its entire outstanding financial liability along with 12 percent annual interest, warning that its directors face immediate imprisonment if they fail to comply.
During a hearing on Monday, a three-judge bench led by Chief Justice Surya Kant issued a stern warning to the developer’s management, drawing parallels to the jailed leadership of Unitech. The bench, which also includes Justices Joymalya Bagchi and V. Mohana, observed that the company had defrauded consumers nationwide and hijacked the legal system.
Strict Judicial Ultimatum
The top court directed the builder and its officials to deposit the full recoverable amount with the Supreme Court registry by July 27. The bench clarified that this represents the final opportunity for the developer to comply before outstanding non-bailable warrants are executed.
Invoking Article 142 of the Constitution, which grants the Supreme Court plenary powers to deliver complete justice, Chief Justice Kant rejected arguments concerning insolvency proceedings or other residents in the housing project. He emphasized that the court would not entertain alternative proposals or discussions until the complete payment is deposited.
The court ordered that all existing restrictions, including the freezing of bank accounts belonging to the company and its directors, will remain in effect. The next hearing in the case is scheduled for next Monday.
Two Decades Of Unfulfilled Promises
The judicial action stems from a petition filed by senior citizens Rita Tikku, a cancer survivor, and Lokaish Tikku. The couple invested their life savings of Rs 1.78 crore in the “Parsvnath Exotica” housing project in Sector 53, Gurugram.
Though the Tikkus were allotted their residential unit in 2006 and signed a builder-buyer agreement in early 2007, they never received possession of the flat. Delivery of the property was legally due in February 2013, but construction remained incomplete despite the buyers paying the full sale consideration.
The petitioners subsequently approached the Haryana Real Estate Regulatory Authority (HRERA), which awarded them compensation. Parsvnath did not challenge the regulatory directives, allowing them to attain finality, but the developer repeatedly ignored orders to either hand over the property or pay the mandated compensation.
Subsequent execution attempts proved ineffective. The developer ignored multiple show-cause notices and bailable warrants issued by HRERA, and the builder’s security staff actively blocked a court bailiff from entering the company’s premises to execute the regulatory orders.
Systemic Hurdles And State Accountability
The buyers’ struggle to secure their funds was further complicated in April 2025, when the Punjab and Haryana High Court struck down a state government notification that authorized HRERA to issue recovery certificates.
Seeking to bypass the administrative deadlock, the Supreme Court took up the petition and initiated strict measures on July 13. In that hearing, the court froze the developer’s bank accounts, issued bailable warrants against its directors, and prohibited the creation of any third-party rights or the transfer of flat possession to third parties.
The Haryana state government has since submitted a compliance affidavit, which the court ordered to be formally integrated into the case records immediately. To ensure the strict execution of its orders, the Supreme Court has directed Haryana’s Chief Secretary, Director General of Police, all district collectors, and police commissioners to enforce compliance and submit supporting affidavits.
