Supreme Court Directs Freezing of Accounts and Stays Transactions in Parsvnath Exotica Case

<h1>Supreme Court Directs Freezing of Accounts and Stays Transactions in Parsvnath Exotica Case</h1>

The Supreme Court of India has issued significant directives concerning the residential project, Parsvnath Exotica, following a writ petition filed by homebuyers. The court ordered the freezing of bank accounts belonging to Parsvnath Developers Limited and its subsidiary, as well as directing that all third-party rights or transactions related to the property must be stayed until further orders.

The order addresses the plight of senior citizens who invested their life savings in residential apartments under the Parsvnath Exotica project in Gurugram. The matter involves Parsvnath Developers Limited and its subsidiary, Parsvnath Hessa Developers Private Limited (Respondent No. 2), whose Directors and Officers are also named respondents.

According to records reviewed by the court, the Writ Petitioners were provisionally allotted residential units in 2006, followed by Flat Buyer Agreements with the builders in early 2007. The total sale consideration for these flats was approximately Rs. 1.78 crores per flat. Clause 10(a) of the agreements stipulated that possession must be delivered within 36 months from the date of construction, making possession due by February 2013.

Despite fulfilling their obligations and paying the entire sale consideration between 2006 and 2014, the homebuyers found that the construction was not near completion upon visiting the site on multiple occasions. When the petitioners approached the Haryana Real Estate Regulatory Authority (HRERA) in 2021, it passed orders directing the builders to compensate them with interest at a rate of 9.3% per annum for every month of delay.

Although HRERA issued Recovery Certificates amounting to Rs. 1.81 crores in favour of the petitioners, no amount could be recovered through the Collector, Gurugram, between June 2023 and April 2024. The case reached the Supreme Court as previous measures proved ineffective in securing the execution of the HRERA orders.

The court’s directives resulting from the hearing on July 13, 2026, include:

• Account Freezing: Freezing the bank accounts of Parsvnath Developers Limited and Parsvnath Hessa Developers Private Limited. The personal accounts of the Managing Directors, Directors, and Officers of Respondent Nos. 2 and 3 must also remain frozen till further orders.
• Transaction Stay: A stay has been placed on the creation of third-party rights or delivery of possession to any third parties or entering into any transaction pertaining to the immovable assets of Respondent Nos. 2 and 3, pending subsequent orders.
• Warrant Issuance: Bailable warrants were issued against Respondent No. 2 and 3, their Directors, and officers, mandating their personal appearance before the Court on July 20, 2026.

The court noted that in one case, the bailiff was not allowed to enter the company's premises on several occasions, highlighting the difficulties in coercive enforcement. The matter is scheduled for further hearing on July 20, 2026.

PARSVNATH Stock Price Movement​

Parsvnath Developers Limited (PARSVNATH) shares today slipped by 1.74% to close at ₹2.26, shedding ₹0.04 from the previous close. The stock traded with a volume of 80,067 shares and notably reached its 52-week low in the process.