New Delhi: The Supreme Court has issued a stern warning to the top management of Parsvnath Developers, saying they could be sent to jail if they fail to refund money owed to homebuyers within one week. According to a Times of India report, the court also ruled that ongoing insolvency proceedings cannot be used to avoid complying with judicial orders.
One final opportunity
A Bench comprising Chief Justice of India Surya Kant and Justice Manmohan granted the company one final chance to deposit the entire amount due to two homebuyers who had approached the court. The payment must include 12 per cent annual interest and be made within a week.
The court also directed that the freezing of bank accounts of Parsvnath Developers, Parsvnath Hessa Developers Pvt Ltd and their senior officials would continue until the court's directions are fully complied with.
'Next step is jail'
The Bench adopted a tough stand while hearing the matter.
"The next step is jail... that is all," the judges observed while rejecting the company's argument that insolvency proceedings should prevent further action.
The court further said it was not concerned with the insolvency process if homebuyers continued to suffer.
"We are not concerned. We will send them to jail if they do not comply with our orders. You have duped people everywhere. You have made a mockery of all proceedings," the Bench told the company's counsel.
Reference to Unitech case
The Supreme Court said it was ready to follow the same approach taken in the Unitech case, where promoters Sanjay Chandra and Ajay Chandra were arrested for failing to refund thousands of homebuyers.
The judges remarked that the entire system had been "hijacked" and that people across the country had suffered because of such delays.
Insolvency plea rejected
During the hearing, counsel for Parsvnath submitted that insolvency proceedings against the company had been initiated in April this year. However, the Bench refused to accept this as a valid reason for delaying refunds.
The court made it clear that protecting the interests of homebuyers remains its priority and warned that failure to meet the one-week deadline would invite strict action, including imprisonment of the company's top executives.
