The Supreme Court, on October 21, 2016, directed Parsvnath Developers to hand over possession of a flat in its Gurgaon project, to minister of state for information and broadcasting, Rajyavardhan Singh Rathore, in two days.
A bench, comprising justice Dipak Misra and Amitava Roy said, “The possession of flat shall be handed over to the respondent in two days,” adding that Rathore should not pay any further amount to the developer.
The apex court said that the issue of compensation to be paid by the realty firm to Rathore, for the delayed possession, would be dealt with at a later stage of the hearing. During the hearing, the counsel appearing for the builder, said the flat was ready and they could hand over possession.
Rathore had booked a flat in Parsvnath’s Exotica project in Gurgaon, in 2006 and paid around Rs 70 lakhs for it. The firm was to deliver the flat in 2008-09. In January this year, the National Consumer Disputes Redressal Commission (NCDRC), had directed the builder to refund the principal amount with interest and compensation to Rathore.
The case against Parsvnath: Timeline
October 2016: The Supreme Court, on October 18, ordered the disbursal of Rs 12 crores, deposited by real estate firm Parsvnath Buildwell Pvt Ltd in the SC’s registry, to 70 home buyers on pro-rata basis, after proper identification. It also directed the firm to deposit Rs 10 crores by December 10, 2016, with the Supreme Court registry. The apex court’s observation had come, after Parsvnath Buildwell Pvt Ltd had said it would give the flats to 70 home buyers, by December 17.
September 2016: The apex court had, on September 15, directed the firm to deposit Rs 12 crores within four weeks, as interest bearing short-term deposit, for delaying the handing over of possession of flats, to home buyers in its Ghaziabad project.
August 2016: On August 26, the developer had told the court that they were in ‘serious financial difficulty’, as they had suffered a loss of around Rs 400 crores in the previous year. They had also said that they would hand over possession, of the flats in its delayed project at Ghaziabad, within a year.
May 2016: The firm was asked by the apex consumer commission in May, to refund the principal amount in four weeks, with 12% interest, along with Rs 3 lakhs as compensation and Rs 25,000 as litigation cost, to 70 buyers who had booked flats in the Parsvnath Exotica project, Ghaziabad. The court was also informed that 854 flats were to be constructed in the project and 818 buyers had made bookings. Parsvnath then moved the apex court, against the apex consumer commission’s order.
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