Cash-strapped Parsvnath firm say they have no money to refund buyers | india-news | Hindustan Times
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Cash-strapped Parsvnath firm say they have no money to refund buyers

The court has sought a schedule for the refund even as the firm pleaded such a course would create “serious and irreversible conditions” for it.

india Updated: Aug 27, 2016 00:05 IST
A car showroom at Parsvnath Exotica apartment's exit gate  in Gurgaon.
A car showroom at Parsvnath Exotica apartment's exit gate in Gurgaon.(Parveen Kumar/Hindustan Times)

Real estate firm Parsvnath Developers assured the Supreme Court on Friday it would hand buyers flats in its delayed project in Ghaziabad within a year, despite suffering a loss of Rs400 crore last year.

A bench headed by Justice Dipak Misra is hearing the company’s appeal against a National Consumer Disputes Redressal Commission (NCDRC) order, which directed the firm to refund money to 70 investors who had booked flats in its Parsvnath Exotica housing project.

Senior advocate Dushyant Dave appealed to the court not to order the refund, saying “the company is in a serious financial difficulty”, but it will deliver the flats within 12 months.

The bench, however, refused to hear the company because the matter was listed before the court for deciding an application by the flat buyers.

“We will hear you on September 15,” the bench told Dave, who argued the commission’s order would lead to a “mad rush and everybody will come to get the money back”.

The lawyer pleaded for the court’s assistance to help the company sort out a dispute with the Ghaziabad Development Authority, which cancelled the project in 2015 after Parsvnath submitted a revised plan.

Dave said the firm will follow the original plan, but required the court’s help in completing the project.

He said 854 flats were to be constructed and 818 bookings were done.

But the court said it will not expand the petition’s scope.

In a similar case related to DLF, the bench gave time to the realty company to hand over 50 flats in its housing project in Panchkula, Haryana, by November-end.

Read | Builders have to keep promises to buyers, have no excuse, says legal experts