New Delhi, Nov 5 (PTI) In a significant development, the Supreme Court on Thursday permitted the execution of conveyance deeds in favour of existing allottees of completed projects of the ailing real estate firm, Parsvnath Developers.
The top court also partially relaxed its July 13 order freezing the bank accounts of Parsvnath Developers and its associated entities to facilitate the payment of electricity charges and employees' dues.
The lending financial institutions of the real estate firm, which is facing insolvency proceedings, have been directed by a bench comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi to make adequate funds available to the Resolution Professional (RP) to meet these essential expenses.
On July 13, the CJI-led bench had made a stinging rebuke of the "brazen disregard" shown by Parsvnath Developers towards homebuyer rights.
It had ordered the freezing of bank accounts of Parsvnath Hessa Developers Pvt Ltd, Parsvnath Developers Ltd and their 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.
On Thursday, the bench took note of the submissions of senior advocate Shayam Divan that let the resolution professional take some steps to deal with the grievances of hassled homebuyers.
{{/usCountry}}On Thursday, the bench took note of the submissions of senior advocate Shayam Divan that let the resolution professional take some steps to deal with the grievances of hassled homebuyers.
{{/usCountry}}The bench clarified that the relief of execution of conveyance deeds would be available only after proper verification of allotments.
It further made clear that the permission must not be used to create any third-party rights in the properties.
The directions come as the bench examined the larger question of how to protect thousands of Parsvnath homebuyers, many of whom have been waiting for possession since 2005-07 amid the company's financial and insolvency-related difficulties.
During the proceedings, the bench raised concerns over what it described as a "majoritarian asymmetry" in the committee of creditors (CoC), saying that the commercial interests of financial creditors could take precedence over the legitimate concerns of homebuyers.
The bench indicated that a conventional insolvency resolution framework may not adequately address the vastly different circumstances of individual housing projects.
While some projects are reportedly 70-90 per cent complete, others lack basic infrastructure and essential amenities.
Certain projects have allegedly been abandoned altogether or exist only on paper, a lawyer representing homebuyers said.
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Earlier, the bench had come down heavily on Parsvnath Developers for its "brazen disregard" of homebuyers' rights and the failure to comply with orders passed by the Haryana Real Estate Regulatory Authority (HRERA).
The proceedings arose from a petition filed by Rita Tikku, a cancer survivor, and her husband, Lokaish Tikku, who had invested their life savings in the Parsvnath Exotica residential project in Sector 53, Gurugram. According to the petition, the couple was allotted residential units in 2006, followed by the execution of a Builder-Buyer Agreement in early 2007.
The total sale consideration was approximately ₹1.78 crore and possession was contractually due within 36 months, by February 2010, though the court's July 13 order recorded February 2013 as the possession due date.
Despite making full payment, the petitioners allegedly did not receive possession, with construction remaining far from completion.
The homebuyers subsequently approached Haryana RERA, which passed orders awarding compensation to them.
These orders, which were not challenged by the builder, attained finality, the bench had said.
However, the company allegedly failed to comply with the directions, neither handing over possession nor paying the awarded compensation.
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Later, the bench expanded the scope of the hearing as other home buyers also approached it. Tikkus got their homes following the court's intervention.