Supreme Court freezes bank A/Cs of Parsvnath, its Directors

New Delhi: In a stinging rebuke of the 'brazen disregard' shown by Haryana-based Parsvnath Developers towards homebuyer rights, the Supreme Court on Monday froze the bank accounts of the real estate firm and its directors, and issued bailable warrants against the company's leadership after taking note of a 20-year struggle by senior citizens to secure possession of their homes.

A bench headed by Chief Justice of India Surya Kant also came down heavily on Haryana authorities for their failure to enforce orders passed by the Haryana Real Estate Regulatory Authority (HRERA) against the real estate firm, saying that the case exposes serious concerns about the effectiveness of the Real Estate (Regulation and Development) Act, 2016, in securing relief for homebuyers. The bench, also comprising Justices Joymalya Bagchi and V Mohana, expressed grave concern over the 'slumber' of regulatory authorities and suggested a 'collusion' between the Haryana state machinery and the builder. To ensure that the builders do not evade justice, the bench ordered freezing of bank accounts of Parsvnath Hessa Developers Pvt Ltd, Parsvnath Developers Ltd and the personal accounts of their managing directors and directors with immediate effect.