News: SC Asks Parsvnath To Pay 10% Per Annum Interest To 70 Exotica Home Buyers As Interim Relief-01.11.2017

SC asks Parsvnath to pay 10% per annum interest to 70 Exotica home buyers as interim relief

The Supreme Court on Wednesday asked Parsvnath Developers to pay interest at 10% per annum to 70 home buyers of its Exotica project in Ghaziabad as an interim relief for delay in giving possession of apartments.

The final hearing in the case has been scheduled for December 1 to determine the exact interest component to be paid to the home buyers, informed lawyer advocate ML Lahoty, who appeared on behalf of the aggrieved buyers in this case.

Parsvnath Developers has already deposited the principal amount amounting to Rs 22 crore with the apex court's registry, which has been distributed to the said home buyers.

The National Consumer Disputes Redressal Commission (NCDRC) in May this year had asked Parsvnath Developers to refund the entire amount paid by 70 home buyers in its Ghaziabad project with 12% interest for delay in completing the project. The real estate developer had appealed against the NCDRC order in the Supreme Court.

The Ghaziabad Development Authority had also cancelled the building plans for Parsvnath Exotica in August last year.

NCDRC in May this year had decided to issue a public notice in newspapers for all the home buyers in Parsvnath Exotica project in Ghaziabad to expedite redressal of their grievances.

The land owner of Parsvnath Exotica project in Ghaziabad, Devidayal Aluminium Industries, had also cancelled the power of attorney (POA) for the land in June this year. However, Parsvnath had termed the cancellation as illegal.

The 31-acre Parsvnath Exotica project, which was launched in 2007, has been mired in controversies and has not been completed yet.