SC directs Parsvnath Developers to refund Rs22 crore to home-buyers

The apex court says the interest component and compensation for delay in handing flats will be dealt with at a later stage


On 6 May, the NCDRC had asked Parsvnath to refund within four weeks money paid by 70 flat buyers of its Exotica project in Ghaziabad with an interest of 12%. Photo: Ramesh Pathania/Mint
On 6 May, the NCDRC had asked Parsvnath to refund within four weeks money paid by 70 flat buyers of its Exotica project in Ghaziabad with an interest of 12%. Photo: Ramesh Pathania/Mint

New Delhi: The Supreme Court on Tuesday directed Parsvnath Developers to refund Rs22 crore to 70 flat buyers of its Exotica project in Ghaziabad.

A bench comprising justices Dipak Misra, Amitava Roy and A.M. Khanwilkar allowed buyers to receive the refund of the principal amount paid by them in 2010. The interest component and compensation for delay in handing flats will be dealt with at a later stage, the court said.

The refund would come partly from the Rs12 crore deposit made by the developer with the apex court’s registry.

The court asked Parsvnath to deposit an additional Rs.10 crore by 10 December.

The court’s order comes in a case where the real estate developer appealed against a consumer forum ruling on compensating homebuyers who were not delivered their flats yet.

The company’s Exotica project in Ghaziabad hit a roadblock after the Ghaziabad Development Authority (GDA) quashed a revised plan of construction.

A Parsvnath spokesperson said it was a relief for the company as the SC also directed issuing of notice to the land owner because of whom the approvals were pending at the GDA and the project got delayed. “Once that happens we are very confident of taking the project in full swing and hand over possession at the earliest,” the spokesperson said.

The land owner for the project will pay 18.5% of Rs10 crore to be deposited with the court, the spokesperson added.

On 6 May, the National Consumer Disputes Redressal Commission (NCDRC) had asked Parsvnath to refund within four weeks money paid by 70 flat buyers of its Exotica project in Ghaziabad with an interest of 12%. The apex court earlier refused to stay the consumer forum’s order and asked the developer to deposit the money with the court.

The case will be heard next on 14 December.

Parsvnath’s La Tropicana project in Delhi has also been embroiled in litigation with buyers, due to delay in delivery of flats by more than three years.

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