Supreme Court Directs Parsvnath Developers To Deposit Rs 12 Crore In Four Weeks

The Supreme Court on Thursday directed real estate firm Parsvnath Developers Ltd. to deposit Rs 12 crore with the Court’s registry within four weeks for a delay in delivering flats to 70 buyers in Greater Noida.

The Court has asked the 70 buyers, who had approached the National Consumer Disputes Redressal Commission (NCDRC), to respond to Parsvnath’s proposal of giving them rent till the project is completed in December 2017.

“The original plan approval was for four towers with 848 flats. We approached the Gaziabad Development Authority (GDA) with a revised plan to add two towers but now we are willing to scrap the plan for additional towers. We are waiting for GDA to revalidate old plan and expect to complete the project by December 2017,” senior advocate Kapil Sibal told the Court on behalf of Parsvnath Developers.

Rejecting Parsvnath Developer’s plea to call the GDA to Court to explain the status of the approval process for the project, the Supreme Court said that is a matter which the developer will have to deal with as it “does not lie in Court’s domain.”

The Justice Dipak Misra led bench reiterated the Court’s earlier stand that home buyers will have to be compensated for the 10-year delay in the project -- Parsvnath Exotica.

After the National Consumer Disputes Redressal Commission (NCDRC) directed the real estate firm to refund some buyers, the Parsvnath group challenged the order in the apex court. Flat buyers told the Supreme Court that they bought these flats in 2006-07 and possession was supposed to be given within 36 months of signing the agreement, but the project has been in limbo with no definite deadline for completion.

“We have been waiting for the project to be completed but now we cannot wait. We want a refund of the money we spent. The Gaziabad Development Authority cancelled Parsvnath’s project in 2014. No construction has taken place since then,” flat buyers argued in court.

The apex Court has asked buyers to respond to Parsvnath Developer’s proposal of giving quantified rent within a week. The Court has also asked buyers whether the developer’s plan to hand over possession of the flats by December 2017 is acceptable to them.

The Court will hear the case next on October 18.