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Supreme Court orders Parsvnath to deposit Rs 12 crore within 4 weeks

  • The Supreme Court on Thursday ordered the real estate developer Parsvnath Buildwell to deposit Rs. 12 crores with its registry in a case where 70 home buyers in its Exotica project in Ghaziabad have sought refund as the company has delayed delivery of flats. The money is to be deposited within four weeks.

    The bench had refused to provide any interim relief to Parsvnath, asking the developer to refund money to 70 buyers whose flats have not been delivered yet. It also asked the 70 buyers to respond to Parsvnath’s proposal of giving them rent till the project is completed in December 2017.

    It also asked buyers whether the developer’s plan to hand over possession of the flats by December 2017 is acceptable to them. The next date of hearing is on October 18.

    “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 the apex 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.”

    Earlier, the builder had told the apex court that it would not be able to pay the amount as it would lead to a rush of customers wanting their money back.

    Senior counsel Dushyant Dave, appearing for Parsvnath, had then told the bench that they were in a serious “financial difficulty” as it suffered a loss of around R400 crore last year. He said that the builder will hand over possession of flats to buyers within a year.
     

    OUR TAKE

    This is yet another case of tussle between the builders and buyers over non – delivery possession. It has become a trend in real estate business of taking the money from the buyers and then retaining their flats possession. Real estate business is replete with numerous reasons due to which builders have taken more than the required time to finish projects while leaving home buyers to suffer financial loss. And to cope these delays is rampant corruption plaguing this industry. There should be strict regulation of this industry and stringent punishment for such malpractices.


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