Delhi District Consumer Court issues non-bailable warrants against directors of Parsvnath Developers

The East Delhi District Consumer Disputes Redressal Commission recently issued non-bailable warrants against the directors of real-estate company, Parsvnath Developers [Kiran Gupta Vs. Parsvnath Developers Ltd.].The order was passed after the consumer commission found that Parsvnath Developers was avoiding the payment of money ordered to be paid to a homebuyer in July 2023.The July 2023 ruling was passed over the real-estate developer's failure to hand over the possession of an apartment to the homebuyer.On July 11, 2024, a coram comprising district forum President Sukhvir Singh Malhotra and member Ravi Kumar issued non-bailable warrants against the directors of the real-estate company. “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 order stated. .The homebuyer had booked the apartment in 2008 by making a payment of ₹ 8,10,000 to the real estate company.Despite assuring that possession would be handed over to the homebuyer within two years and after the completion of the project, Parsvnath Developers failed to do so for the next ten years.The homebuyer, therefore, approached the district consumer court for relief. On July 26, 2023, a three-member Bench of the district consumer rights forum held the developer liable and ordered it to return the entire amount of ₹8,10,000 with interest. The district consumer forum also ordered Parsvnath Developers to pay an additional ₹25,000 for deficiency in service and ₹10,000 as litigation costs. This amount was to be paid within 30 days, but Parsvnath Developers failed to do so.This led the homebuyer to approach the district commission again around six months later, seeking an execution of the July 2023 order.After this execution plea was taken up for hearing, Parsvnath Developers paid ₹2,00,000 out of their total dues and promised to pay the remaining amount. However, the developer chose not to appear on the next date of hearing, prompting the commission to conclude that it was trying to avoid completing the payment of the due amount. Having issued non-bailable warrants against the developer's directors, the commission posted the matter for hearing next on August 7. .Advocates Swati Aggarwal and Yogita Yadav appeared for the homebuyer (decree holder/ complainant) Kiran Gupta. .[Read Order].[Read July 2023 Order].Follow Bar and Bench channel on WhatsAppDownload the Bar and Bench Mobile app for instant access to the latest legal news.