The Supreme Court on Monday suspended the bank accounts of Parsvnath Developers and issued bailable arrest warrants against its corporate leadership following a decades-long delay in delivering a residential project in Haryana.
A three-judge bench comprising Chief Justice Surya Kant, Justice Joymalya Bagchi, and Justice V Mohana initiated the strict measures after observing systemic failures in regulatory enforcement. The court expressed suspicion that state authorities and local police may have colluded with the real estate firm to help it evade previous legal obligations.
Assets Frozen And Warrants Issued
The court ordered an immediate freeze on the corporate bank accounts of Parsvnath Developers Ltd and Parsvnath Hessa Developers Pvt Ltd. The asset freeze also applies to the personal accounts of the companies’ directors and managing directors.
In addition to the bailable warrants, the bench issued a strict warning that non-bailable warrants would follow if the company executives do not present themselves at the next scheduled hearing. The developer has also been legally barred from transferring any property rights or handing over possession of units to third parties until the court directs otherwise.
Decades Of Unresolved Delays
Monday’s judicial action was triggered by a petition from homebuyers Lokaish Tikku and Rita Tikku, a cancer survivor. The couple purchased a unit in the Parsvnath Exotica development located in Gurugram’s Sector 53, signing a buyer agreement in early 2007 after an initial allotment in 2006.
The petitioners paid the entire property value of roughly Rs 1.78 crore. The developer was scheduled to hand over the property by 2013, but the residential project remains incomplete nearly twenty years after the initial housing allocation.
Failure Of State Enforcement
The Supreme Court heavily criticized Haryana’s regulatory apparatus for its inaction. The petitioners had previously won a compensation order from the Haryana Real Estate Regulatory Authority in 2021. However, Parsvnath Developers ignored the ruling without formally challenging it.
During the proceedings, the Chief Justice noted that previous enforcement efforts had been entirely ineffective. The bench was informed that HRERA-issued arrest warrants against the builders were completely ignored. In one specific incident presented to the court, a legal bailiff was physically blocked from entering the developer’s property, and local law enforcement offered no assistance.
Concluding that local collectors and police either neglected their duties or actively conspired with the company, the Supreme Court has now mandated direct state oversight. The chief secretary of Haryana, the director general of police, local police commissioners, and district collectors have been ordered to ensure complete enforcement of Monday’s directives and must submit formal affidavits confirming their compliance.
