15 October 2026

Supreme Court rejects Parsvnath proposal for homebuyers, warns of panel takeover

The Supreme Court on 8 September 2026 rejected a proposal filed by Parsvnath Developers for handing over flats or refunding money to its homebuyers, describing it as "nothing but another device to delay" possession and repayment. A bench of Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana gave the developer another chance to file a fresh proposal, but warned that it could otherwise appoint a high-powered committee to take over the company's obligations to buyers.

What the court said

According to reports in Verdictum, Deccan Herald and The Pioneer, the bench said the proposal placed on record was another device to delay compliance on possession of flats and on repayment of money to allottees. Unless a fresh proposal satisfying the claims of all allottees of the company and its subsidiaries is filed, the court said it would be constrained to appoint a High-Powered Committee to take over those responsibilities.

During the hearing, the Chief Justice reportedly told the company to deposit ₹500 crore with the Supreme Court registry. The bench also refused a plea by the insolvency resolution professional (IRP) to operate one of the company's frozen bank accounts to run its affairs. The CJI remarked that if IRPs were working properly, homebuyers would not have had to approach the court.

The bench also observed that state authorities, which were expected to protect homebuyers, appeared to have colluded with the builder, and criticised the failure to enforce orders of the Haryana Real Estate Regulatory Authority (HRERA) against the firm.

Key numbers reported

24 projects planned to deliver about 27,000 homes, according to counsel cited in the reports.
About 24,000 units have been sold, with roughly 3,000 still to be offered for possession.
The IRP told the court he had received around 3,000 claims from homebuyers.
More than 10 cases against the same builder are before the bench.

How the case reached this stage

The proceedings began with a petition by Rita Tikku and Lokaish Tikku, who paid ₹1.78 crore for a flat in Parsvnath Exotica, Sector 53, Gurugram. Possession was due in February 2013. Moneylife reported that in July 2026 the same bench froze the bank accounts of the company and its directors, issued warrants, and directed the developer to deposit the recoverable amount with 12% annual interest within a week. At that hearing the court refused to let pending insolvency proceedings shield the company from complying, warning that "the next step is jail".

What it means for homebuyers

For buyers in Parsvnath projects, the order does not yet deliver flats or refunds. It does signal that the court is unwilling to accept piecemeal or open-ended proposals and is prepared to hand control to a court-appointed committee if the developer does not offer a plan covering every allottee. Reports did not mention a date for the next hearing.

The case also highlights a wider problem the bench flagged: RERA orders that are passed but not enforced. Buyers holding HRERA refund or delay-compensation orders that remain unpaid have found that the order alone does not guarantee recovery.

What buyers can do

Allottees in affected projects should keep their allotment letters, payment receipts, builder-buyer agreements and any RERA orders organised, and make sure their claim is filed with the IRP within the deadline set in the insolvency process. Those buying in Gurugram today can check a project's RERA registration and complaint history before paying, and compare ready options on RealtyMandi's Gurgaon property listings. More court and policy updates are on the RealtyMandi blog.