Delayed flats, unpaid compensation: Supreme Court freezes Parsvnath accounts

3 min readNew DelhiUpdated: Jul 13, 2026 05:38 PM IST

The Supreme Court also issued bailable warrants against the directors of of two subsidiaries of real estate major Parsvnath Developers. (File Photo)

The Supreme Court Monday froze the bank accounts of its two subsidiaries of real estate major Parsvnath Developers, Parsvnath Hessa Developers Ltd and Parsvnath Developers Limited, its managing directors, directors and officers for “brazen disregard” of the directions of the Haryana Real Estate Regulatory Authority (HRERA).

Noting that the builders “continue to defy and disregard directions” issued by HRERA to compensate homebuyers for the delay in constructing and handing over their pre-booked apartments, a three-judge bench presided by Chief Justice of India Surya Kant also issued bailable warrants against the directors.

The bench, comprising Justices Joymalya Bagchi and V Mohana, also warned that it would issue non-bailable warrants if they failed to appear before it on the next date of hearing.

“We are prima facie further satisfied that State authorities, especially the Collector and local police, are either colluding with the builder or have failed to discharge their official responsibilities,” the bench said.

The top court also pointed to lapses in executing warrants issued to secure their presence before HRERA.

‘Petitioners are still running from pillar to post’

Two senior citizens, who invested their life savings to buy a flat in the Parsvnath Exotica project in Sector 53, Gurgaon, filed a plea stating they have yet to receive possession of completed apartments, even though the agreement was signed in 2007.

The possession was originally scheduled for 2013, but even after more than a decade, the project has remained incomplete.

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In 2021, HRERA directed the builder to compensate the petitioners. This order was neither challenged nor complied with.

A year later, the petitioners initiated execution proceedings before HRERA, but even then, nothing could be recovered.

“We are perturbed to note that in one case, the bailiff was not allowed to enter the companies, necessitating police assistance… No coercive measure could be implemented, and thus petitioners are still running from pillar to post seeking execution of the 2021-22 orders in their favour”.

“Prima facie, we find that these proceedings raise concerns extending well beyond the present petitioners. The Real Estate (Regulation and Development) Act provides a statutory mechanism to protect the interests of homebuyers. However, these cases reveal that the efficacy of such a mechanism depends on the ability of the law to secure compliance with orders passed”.

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It asked the state chief secretary, the director general of police, collectors, commissioners, and banks to strictly follow its directions and file affidavits attesting to compliance.