Real Estate Company Found Avoiding Payment Ordered by Delhi District Consumer Court (Consumer Forum)
In a significant development, the East Delhi District Consumer Disputes Redressal Commission has issued non-bailable warrants against the directors of Parsvnath Developers. The real estate company has been found intentionally avoiding the payment ordered by the consumer forum last year for its failure to hand over an apartment to a homebuyer.
The case, titled **Kiran Gupta vs. Parsvnath Developers Ltd.**, saw the consumer commission taking stern action after discovering that Parsvnath Developers was deliberately evading the payment mandated by a July 2023 ruling. This ruling had been issued due to the company’s failure to deliver the possession of an apartment to the homebuyer.
On July 11, 2024, a bench comprising district forum President Sukhvir Singh Malhotra and member Ravi Kumar issued the non-bailable warrants. The order stated:
“No payment is made by the Judgment-Debtor (Parsvnath Developers) despite directions given to the Judgment-Debtor by the Commission. It appears that Judgment-Debtor is intentionally avoiding to make payments to decree holder (complainant). Issue Non-Bailable Warrant against the directors of the JD on furnishing their names.”
The case dates back to 2008 when the homebuyer booked an apartment with Parsvnath Developers, making an initial payment of ₹8,10,000. The real estate company assured possession within two years, following the project’s completion. However, even after ten years, the possession was not handed over, prompting the homebuyer to seek redressal from the district consumer court.
On July 26, 2023, the three-member bench of the district consumer rights forum held the developer liable and ordered the return of the entire amount of ₹8,10,000 with interest. Additionally, Parsvnath Developers was directed to pay ₹25,000 for deficiency in service and ₹10,000 as litigation costs. The amount was to be paid within 30 days, but the developer failed to comply.
Six months later, the homebuyer approached the district commission again, seeking the execution of the July 2023 order. During the hearing, Parsvnath Developers paid ₹2,00,000 out of their total dues and promised to pay the remaining amount. However, they failed to appear on the next hearing date, leading the commission to conclude that the company was trying to avoid payment.
Consequently, non-bailable warrants were issued against the directors, and the matter has been scheduled for the next hearing on August 7.
Advocates Swati Aggarwal and Yogita Yadav represented the homebuyer, Kiran Gupta.
(With inputs from agency)
Share your news, articles, deals, columns, or press releases with us! Click the link to submit and join our platform today.
