Supreme Court freezes Parsvnath developers' bank accounts over non-compliance with Haryana RERA orders

The Supreme Court has ordered the freezing of bank accounts belonging to Parsvnath Developers, its subsidiary Parsvnath Hessa Developers Pvt. Ltd., and the personal accounts of their directors after the companies allegedly failed to comply with orders issued by the Haryana Real Estate Regulatory Authority (HRERA).

The court also issued bailable warrants against the directors and warned that stricter action, including non-bailable warrants, could follow if they fail to appear at the next hearing.

The case relates to homebuyers who have been waiting for possession of flats in the Parsvnath Exotica housing project in Gurugram for nearly two decades. Despite multiple directions from HRERA, the developer reportedly neither challenged the authority's orders nor followed them.

The Supreme Court expressed concern over the lack of effective enforcement by local authorities and questioned whether there had been failures in carrying out their legal responsibilities.

To protect the interests of homebuyers, the court has barred the developer from creating third-party rights or handing over project units to anyone else until further orders. The matter will now be heard again, with the court closely monitoring compliance.