Parsvnath Developers Limited has told the Supreme Court that they were in a serious ‘financial difficulty’, as they have suffered losses of around Rs 400 crore last year but they would hand over possession of flats to buyers within a year, in its delayed project at Ghaziabad.
The firm, which was asked by the apex consumer commission in May 2016, to refund money to 70 buyers who had booked flats in the Parsvnath Exotica project, told a bench of justices Dipak Misra and C Nagappan that they would make sure the flats are delivered to the customers. “The company is in a serious financial difficulty. We have suffered a loss of Rs 400 crores last year. We will make sure that the possession of flats are delivered to the consumers,” the counsel appearing for the real estate firm, said.
The counsel said the order, like the one passed by the commission, would “amount to a mad rush and everybody will come to get the money back.” He said the firm would construct the flats and hand it over to the buyers within 12 months.
A long wait for buyers, since 2007
Meanwhile, the counsel appearing for the buyers, told the apex court that the Ghaziabad Development Authority (GDA) has cancelled the approval given to the firm for this project. “We had booked the flats in 2007. The project was to be completed in 2011. In 2015, the GDA cancelled the approval. What is our fault?” the counsel asked, adding that the firm has not furnished the chart, giving details of the schedule for refunding the money to these 70 buyers.
The firm’s counsel said they were trying to find some way out and assured the bench that possession of flats would be handed over to the buyers. “We have an agreement (with the buyers) and we are bound to give them the flats. We will hand over the flats within 12 months,” the counsel assured.
The firm’s counsel also urged the bench to look into the issue of cancellation of approval given earlier by the GDA. However, the bench said, “We do not want to expand this. You do what you have to do with the GDA.” The court was told that 854 flats were to be constructed in the project and 818 buyers had booked the flats. The bench has now posted the matter for further hearing on September 15, 2016.
Parsvnath Developers Ltd had moved the apex court against the apex consumer commission’s order, asking it to refund the money to 70 buyers along with interest.