Parsvnath Developers case: In a big setback for real estate company Parsvnath developers, the Supreme Court has penalised it and ordered it to make a refund of Rs 22 crore to 70 flat buyers for not handing over possession on time.
While Parsvnath Developers has already deposited Rs 12 crore, Rs 10 crore more is to be deposited till 10 December.
Way back in August, the Supreme Court had ordered two real estate companies DLF Ltd as well as Parsvnath to compensate all those who had bought flats in their projects but had not received the same yet.
The real estate market across India nd specifically in metros Delhi/NCR, Mumbai Bengaluru, Chennai and others has been hit by a slowdown as many of builders projects languish in various states of incompletion. However, this has also caused a delay in deliveries of flats to those who have paid money already.
This has led to a backlash as these buyers/investors have been suffering a double hit – they are continuing to pay rent and at the same time paying EMIs or making other payments to builders. The various courts have come out on the side of the buyers and the latest Supreme Court salvo will go a long way in ameliorating the situation – for the flat buyers, at least.
Parsvnath Developers had told the SC that it faced financial difficulty as it had made a loss of Rs 400 Cr in last fiscal and therefore, it could not refund home buyers of Parsvnath Exotica project. SC had then ordered the builder to provide a refund schedule to the flat buyers. 70 of these apartment purchasers had moved the apex court in the case. Parsvnath faces the ire of as many as 854 home buyers. The builder has said projects may get completed over the next 12 month.