SC pulls up Parsvnath Developers, says refund buyers Rs 22 crore

The bench accepted the buyers’ plea that they should receive the refund of the principal amount paid by them in 2010.

By: Express News Service | New Delhi | Updated: October 19, 2016 2:37 am

The Supreme Court Tuesday reproached real estate firms for failing to honour their commitment to hand over flats in time and observed that buyers should get their money back when they lose trust in the builders’ ability and intention to deliver.

“In this country, builders have developed an attitude to make commitments to purchasers and not fulfil them by delaying projects,” said a bench led by Justice Dipak Misra while directing Parsvnath Developers to refund Rs 22 crore to 70 flat buyers of its Exotica project in Ghaziabad.

The bench accepted the buyers’ plea that they should receive the refund of the principal amount paid by them in 2010. The interest component and compensation for delay in handing the flats will be dealt with at a later stage, the court said.

The refund would come partly from the Rs 12 crore deposit made by the developer with the apex court’s registry. The bench also directed Parsvnath to deposit an additional Rs 10 crore by December 10.

“They (home buyers) do not have patience and trust in you and need refund. Money should go back to them and they should not suffer,” said the bench while pulling up the realty firm for seeking time to deposit an additional Rs 10 crore.

Senior advocate Subramanian Prasad, appearing for the firm, said that as directed by the court, the company had deposited Rs 12 crore with the Supreme Court registry.