News: Supreme Court Freezes Parsvnath Accounts Over 20-Year Delay-13-07-2026
The Supreme Court on Monday froze the bank accounts of Haryana-based Parsvnath Developers and its directors and issued bailable warrants against the company’s leadership, citing "brazen disregard" for homebuyers’ rights in a case where senior citizens have waited 20 years for possession.
A bench headed by Chief Justice of India Surya Kant, with Justices Joymalya Bagchi and V Mohana, also criticised Haryana authorities for failing to enforce orders of the Haryana Real Estate Regulatory Authority (HRERA). It said the case raises serious concerns about how effective the Real Estate (Regulation and Development) Act, 2016, is in securing relief for buyers.
The bench ordered that the accounts of Parsvnath Hessa Developers Pvt Ltd and Parsvnath Developers Ltd, and the personal accounts of their MDs, directors and officers, remain frozen till further orders. As the builders operate mainly in Haryana, it directed the chief secretary, the Director General of Police, all collectors, commissioners, superintendents of police and all banks to comply and file compliance affidavits.
The CJI observed that the bench was prima facie satisfied that state authorities, especially the Collector and local police, were either colluding with the builder or had failed in their official duties.
The petition was filed by Rita Tikku, a cancer survivor, and Lokaish Tikku, who put their life savings into the "Parsvnath Exotica" project in Sector 53, Gurugram. Notices were issued to the state government, the two companies, the district magistrate of Gurugram and Haryana’s Department of Town Country Planning.
Bailable warrants were issued against the two companies and their directors. The bench made clear that if they do not appear, it would be constrained to issue non-bailable warrants (NBWs). It also ordered that no third-party rights be created in the flat and that possession not be given to anyone else meanwhile.
During the hearing, the CJI said of the firm that "not a single project has been completed by them". He asked why NBWs issued by Haryana RERA were not being executed, and noted that the High Court too is flooded with such cases.
The bench recorded that the petitioners were allotted residential units in 2006 and signed the builder-buyer agreement in early 2007. The sale consideration was Rs 1.78 crore, the flat was to be handed over in 36 months, and possession became due in February 2013, it noted. Despite paying in full, they found construction nowhere near complete.
They approached Haryana RERA, which ordered compensation. The builder did not challenge those orders and they attained finality, but neither possession nor compensation followed, the bench said. Execution proceedings proved futile, multiple show-cause notices were served on the directors, and Haryana RERA then issued bailable warrants.
The court said it was perturbed that even the bailiff sent to execute the RERA orders was not allowed into the builder’s premises.
It said the proceedings prima facie raise concerns beyond this case. The Act provides a statutory mechanism to protect buyers, but its efficacy depends on whether orders passed under it are implemented. The bench also noted that in April 2025 the Punjab and Haryana High Court struck down a state notification allowing Haryana RERA to issue recovery certificates.
