Observing that failure to do so would result in imprisonment, a bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana made very strong remarks against the real estate firm and its directors.
“The whole country has been duped by them. If you (real estate firm and its directors) do not comply with the orders within a week, they will be sent to jail. They are making a mockery of the system.
“The same thing that happened to the Unitech (directors) will happen to them (Parsvnath Developers). The entire system has been hijacked,” the CJI said.
The case pertained to a petition filed by one Rita Tikku, a cancer survivor, and Lokaish Tikku, who invested their life savings in the ‘Parsvnath Exotica’ project in Sector 53, Gurugram.
The bench noted that the Haryana government has filed the status report as directed by it earlier.
“The Haryana government states that a compliance affidavit has been filed. However, the same was filed last evening and not tagged with the paper books. Let it be done immediately,” it said. The bench said the respondent builder and its officials have entered an appearance.
“Let them explain non-adherence to orders by HRERA (Haryana Real Estate Regulatory Authority). Before the execution of non-bailable warrants, which is already issued, we grant the last opportunity to the builders to deposit the entire recoverable amount along with interest of 12 per cent per annum with the Supreme Court registry.
“Let it be deposited within a week. Post this case next Monday,” the bench ordered.
It said that according to an earlier order, “Everything will continue to remain frozen.”
The bench did not accept the submission that other homebuyers were living in the same building where the petitioners had booked the home.
“No plan. Deposit and then talk. We are under Article 142 (of the Constitution), we are not concerned with IBC (proceedings), insolvency etc…
“Let there be no misunderstanding about our order. The next step is jail. That is all,” the CJI said while adjourning the matter to July 27.
Article 142 of the Constitution grants the top court plenary power to pass any decree or order necessary for doing “complete justice” in any pending case.
On July 13, the top 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 a 20-year struggle by senior citizens to secure possession of their homes.
Taking note of the plea, the bench had issued notices to the state government, Parsvnath Hessa Developers Pvt Ltd through its managing director, Parsvnath Developers Pvt Ltd, the district magistrate of Gurugram and Haryana’s Department of Town Country Planning.
It asked the Haryana chief secretary, the DGP, all district collectors and police commissioners to ensure strict compliance with these orders and submit affidavits.
It also ordered that neither a third party right shall be created nor the possession of the flat will be given to a third party in the meantime.
The bench said the instant petition highlighted the plight of home-buyers who, despite paying full sale consideration, continued to be deprived of their home for the last two decades.
“Petitioners are senior citizens and they invested in Parshunath Exotica in Sector 53, Gurugram. The petitioners were allotted residential units in 2006 followed by the BBA (Builder-buyer agreement) in early 2007.
“Rs 1.78 crore was the sale consideration. The flat was to be handed over in 36 months. Possession became due in February 2013,” it noted.
Despite paying the full amount, the petitioners found that the construction was not even near completion.
The bench said the petitioners approached Haryana RERA which ordered compensation. These orders were not challenged by the builder and attained finality. However, builders continued to disregard the directions, it said.
“Neither possession was issued nor compensation was paid. Execution proceedings have also become an exercise in futility. Multiple show-cause notices were also served to directors of the builder company,” it said.
When nothing could be recovered, bailable warrants were issued against the builders by the Haryana RERA, it said.
“We are perturbed to note that even the bailiff (court staff who went for execution of the RERA orders) was not allowed to enter the builder company. The petitioners are still running from pillar to post. It is in these circumstances that petitioners have approached this court,” it said.
The bench said prima facie, these proceedings raise concerns extending beyond the present case.
The bench also noted that the Punjab and Haryana High Court, in April 2025, struck down a state government notification allowing the Haryana RERA to issue recovery certificates. The petitioners were allotted residential units in 2006 and a flat buyer agreement was signed in early 2007.