The Supreme Court on July 20 gave Parshvanath Developers a last opportunity to comply with the orders passed in favor of home buyers in Gurugram by depositing the entire amount along with 12 per cent interest in the registry within a week.
Noting that failure to do so would result in imprisonment, a bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana made very strong remarks against the real estate firm and its directors.
“The entire country has been cheated by them. If you (the real estate firm and its director) do not comply with the orders within a week, they will be sent to jail. They are making a mockery of the system.”
“What happened to Unitech (directors) will happen to them (Parshvanath Developers). The entire system has been hijacked,” the CJI said.
The case pertains to a petition filed by cancer patients Rita Tikku and Lokash Tikku, who had invested their life savings in the ‘Parshvanath Exotica’ project in Sector 53, Gurugram.
The bench said that the Haryana government has filed the status report as per earlier instructions.
“The Government of Haryana states that a compliance affidavit has been filed. However, it was filed yesterday evening and was not tagged with the paper books. This should be done immediately,” it said.
The bench said that the defendant builder and his officials have appeared.
“Let them know about non-compliance of HRERA (Haryana Real Estate Regulatory Authority) orders. Before the execution of the non-bailable warrant already issued, we give the builders a last chance to deposit the entire recoverable amount with interest at 12 per cent per annum in the Supreme Court registry.
“Let it be submitted within a week. Post the matter on next Monday,” the bench ordered.
It said that as per the earlier order, “everything will remain stable.”
The bench did not accept the argument that other home buyers were living in the same building where the petitioners had booked the house.
“No plan. Submit and then talk. We are under Article 142 (of the Constitution), we are not concerned with IBC (proceedings), bankruptcy etc…
Adjourning the case to July 27, the CJI said, “Let there be no misunderstanding about our order. The next step is jail. That’s all.”
Article 142 of the Constitution grants the apex court absolute power to pass any decree or order necessary to do “complete justice” in any pending case.
On July 13, the apex court froze the bank accounts of the real estate firm and its directors, and issued bailable warrants against the company’s leadership after taking note of the 20-year struggle by senior citizens to regain possession of their homes.
Taking note of the plea, the bench had issued notices to the state government, Parshvanath Hessa Developers Private Limited through its Managing Director, Parsvanath Developers Private Limited, the District Magistrate of Gurugram and the Town Country Planning Department of Haryana.
It asked the Haryana Chief Secretary, DGP, all district collectors and police commissioners to ensure strict compliance with these orders and submit affidavits.
It was also ordered that in the meantime neither any third party’s right will be created nor the possession of the flat will be given to any third party.
The bench said that the present petition highlights the plight of home-buyers who have been deprived of their homes for the last two decades despite consideration of complete sale.
“The petitioners are senior citizens and had invested in Parshunath Exotica in Sector 53, Gurugram. The petitioners were allotted residential units in 2006, followed by a BBA (builder-buyer agreement) in early 2007.
” ₹A sale of Rs 1.78 crore was considered. The flat was to be handed over in 36 months. “Possession became due in February 2013,” it noted.
Despite paying the entire amount, the petitioners found that the construction was not even close to completion.
The bench said the petitioners approached Haryana RERA which ordered compensation. These orders were not challenged by the builder and were finalized. However, the builders continued to disregard the instructions.
“Neither possession was released nor compensation was given. The execution proceedings have also become a futile exercise. Several show cause notices were also served on the directors of the builder company,” it said.
When nothing could be recovered, bailable warrants were issued against the builders by Haryana RERA.
“We are distressed to note that even the bailiffs (court employees who have gone for execution of RERA orders) were not allowed to enter the builder company. The petitioners are still wandering from door to door. It is in these circumstances that the petitioners have approached this court.”
The bench said that prima facie, these proceedings raise concerns beyond the present case.
The bench also noted that the Punjab and Haryana High Court had in April 2025 quashed the state government’s notification allowing Haryana RERA to issue recovery certificates. The petitioners were allotted residential units in 2006 and a flat buyer agreement was signed in early 2007.
