Supreme Court Freezes Parsvnath Developers’ Bank Accounts Over Non-Compliance with HRERA Orders, Warns of Stricter Action

July 14, 2026 : The Supreme Court has ordered the immediate freezing of the bank accounts of Parsvnath Developers Limited, Parsvnath Hessa Developers Private Limited, as well as the personal bank accounts of their directors and senior officials, after finding continued non-compliance with orders passed by the Haryana Real Estate Regulatory Authority (HRERA).

A Bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice V. Mohan also issued fresh bailable warrants against both companies and their directors, directing them to appear before the Court on July 17. The Bench warned that failure to comply with its directions or to remain absent on the next date of hearing could result in more stringent coercive measures, including the issuance of non-bailable warrants.

The case arises from a batch of petitions filed by Rita Tikku and other homebuyers of the Parsvnath Exotica residential project in Gurugram’s Sector 53. The petitioners submitted that despite paying the full sale consideration nearly two decades ago, they had neither received possession of their flats nor the compensation awarded to them by HRERA.

According to the Court’s observations, the homebuyers were allotted apartments in 2006 and executed Builder Buyer Agreements in early 2007. The developer had promised possession within 36 months, making February 2013 the contractual deadline. Although the buyers paid approximately ₹1.78 crore in full, the project remained substantially incomplete even after repeated inspections.

The Bench noted that the homebuyers approached HRERA in 2021, which directed the developer to compensate the allottees. Since the developer did not challenge those orders, they attained finality and became legally enforceable. However, the company neither delivered possession nor paid the compensation. Even execution proceedings before HRERA failed to secure compliance despite repeated notices to the company’s directors.

Expressing concern over the prolonged defiance of regulatory orders, the Supreme Court observed that the effectiveness of the Real Estate (Regulation and Development) Act, 2016 would be seriously undermined if final orders of regulatory authorities remained unenforced.

The Court further observed, prima facie, that the matter extended beyond an individual dispute and highlighted systemic shortcomings in the enforcement of the RERA framework, particularly in ensuring compliance with final adjudicatory orders issued in favour of homebuyers.

The Bench also expressed serious concern over the failure to execute coercive measures already issued against the builder. It noted that HRERA had issued bailable warrants after recovery proceedings failed, yet even the court bailiff was allegedly prevented from entering the company’s premises. The Court questioned why previously issued non-bailable warrants had not been executed and observed that such inaction reflected significant lapses in the enforcement mechanism.

The Supreme Court also criticised the conduct of the Haryana administration, recording its prima facie satisfaction that District Collectors and local police authorities had either failed to discharge their statutory duties or had colluded with the developer by not implementing HRERA’s directions.

To safeguard the interests of the homebuyers, the Court restrained the creation of any third-party rights in respect of the Parsvnath Exotica project. It further directed that the bank accounts of Parsvnath Developers Limited, Parsvnath Hessa Developers Private Limited, and the personal accounts of their directors and senior officials remain frozen until further orders.

The Bench directed the Chief Secretary of Haryana, the Director General of Police, all District Collectors, all Police Commissioners in the State and all concerned banks to ensure immediate implementation of its directions. It also stressed that the State machinery must respond more effectively to homebuyers’ grievances and ensure proper enforcement of orders passed under the Real Estate (Regulation and Development) Act.

During the hearing, Senior Advocate Priya Hingorani, appearing for the homebuyers, informed the Court that one of the petitioners was a cancer survivor and submitted that the developer was presently operating from Chandigarh. The Court observed that the homebuyers had been forced to pursue remedies before multiple forums despite obtaining favourable regulatory orders, while the developer had continued to disregard binding directions issued by HRERA.

The Bench also noted that the Punjab and Haryana High Court had, in April 2025, set aside a Haryana Government notification empowering HRERA to issue recovery certificates. The validity of that judgment is currently under challenge before the Supreme Court. The matter is scheduled for further hearing on July 17.