The Supreme Court recently froze the bank accounts of Haryana-based Parsvnath Developers and its directors, and issued bailable warrants against the company’s leadership after taking note of a 20-year struggle by senior citizens to secure possession of their homes.

Promoted by Pradeep Kumar Jain, Parsvnath Developers Limited is under Corporate Insolvency Resolution Process (CIRP) in Insolvency & Bankruptcy Code, 2016 vide NCLT Court order CP (IB) NO. 468/PB/2024 dated 30.04.2026.

A bench headed by Chief Justice of India Surya Kant came down heavily on Haryana authorities for their failure to enforce orders passed by the Haryana Real Estate Regulatory Authority (HRERA) against the real estate firm, saying that the case exposes serious concerns about the effectiveness of the Real Estate (Regulation and Development) Act, 2016, in securing relief for homebuyers, according to a report by newindianexpress.com.

The bench, also comprising Justices Joymalya Bagchi and V Mohana, expressed grave concern over the “slumber” of regulatory authorities and suggested a “collusion” between the Haryana state machinery and the builder.

The case pertained to a petition filed by one Rita Tikku, a cancer survivor, and Lokaish Tikku, who invested their life savings in the “Parsvnath Exotica” project in Sector 53, Gurugram. Despite paying the full sale consideration of approximately Rs 1.78 crore, the possession, originally due in 2013, never materialised. Two decades later, the project remains incomplete.

The petitioners had previously secured favourable orders from the Haryana Real Estate Regulatory Authority (HRERA) in 2021, which ordered compensation. However, the builder neither challenged the orders nor complied with them.

“Execution proceedings have become an exercise in futility,” the CJI said, adding that even when HRERA issued arrest warrants, they were never executed.

The court was informed that in one instance, a bailiff was physically prevented from entering the builder’s premises while the local police failed to provide effective assistance. “We are satisfied that collectors and local police have either colluded with builders or failed to discharge their responsibility,” the CJI said.

To ensure the builders do not evade justice further, the bench ordered freezing of bank accounts with immediate effect of Parsvnath Hessa Developers Pvt Ltd, Parsvnath Developers Ltd, and the personal accounts of their managing directors and directors.

The CJI warned that if they fail to appear on the next date, Non-Bailable Warrants will be issued.