No Respite For Parsvnath: SC Maintains Refund For Home Buyers of Ghaziabad Project

After Unitech, real estate developer Parsvnath Developers urged the Supreme Court on Friday to not order a refund to home buyers for its delayed project in Ghaziabad. The company told the apex court that they have faced losses to the tune of Rs 400 crore and are not in a position to repay all flat buyers.

Rejecting the developer's plea, the Supreme Court reiterated its earlier stand that home buyers will have to be compensated for the 10-year delay in the company's project, Parsvnath Exotica.

After the National Consumer Disputes Redressal Commission (NCDRC) directed the real estate firm to refund some buyers, the Parsvnath group challenged this order in the apex court.

Flat buyers told the Supreme Court that they bought these flats in 2007 and possession was supposed to be given within 36 months of signing the agreement, but the project has since been in a limbo with no definite deadline for completion. About 70 flat buyers approached the court seeking compensation from the developer.

“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.

Senior Advocate Dushyant Dave refuted compensation orders from the apex court and argued, on behalf of Parsvnath group, that they aim to complete the project within 12 months.

“We will complete the project as per old sanctions. Ghaziabad Development Authority has not rejected the old sanctions for the project. The authority rejected the new proposal to add more towers,” Dave said. The company is trying to resolve the issue with the Ghaziabad authority, he added.

The Supreme Court has directed Parsvnath officials to give a schedule of refund by September 15, the next date of hearing.