Supreme Court Considers EOW, CBI Probe Into Parsvnath Developers
The Supreme Court on Monday indicated that it may hand over the investigation into the affairs of Parsvnath Developers Ltd and Parsvnath Hessa Developers Pvt Ltd to the Delhi Police’s Economic Offences Wing and the Central Bureau of Investigation, describing the alleged fraud on homebuyers as a "high-level fraud" requiring a comprehensive probe across all projects.
A bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V. Mohana directed the interim resolution professional for Parsvnath Developers Ltd, which is undergoing corporate insolvency resolution proceedings, to place on record exhaustive details of all pending litigation involving the companies. The court asked for details of cases pending before high courts, district courts, the Real Estate Regulatory Authority, and other quasi-judicial forums to determine the scale of the alleged fraud and the total number of affected homebuyers.
Senior advocate Vaibhav Gaggar, representing the interim resolution professional, urged the court to lift a freeze on the companies' bank accounts, arguing that the restriction was hampering insolvency proceedings involving 27 Parsvnath projects and more than 10,000 allottees. The bench refused to consider the application in piecemeal, stating that it required full details of every project and the number of homebuyers involved before referring the matter to the EOW and CBI.
While considering individual homebuyer petitions, the bench noted compliance with its earlier directions and ordered the Supreme Court Registry to release demand drafts of nearly ₹2.9 crore and ₹2.7 crore to petitioners Rita Tikku and Anil Kumar Sharma, respectively. Parsvnath Hessa was further directed to finish construction work on both flats and hand over possession to the petitioners by October 31, 2026.
The court's observations arise from petitions filed by homebuyers alleging that the developers failed to comply with orders issued by the Haryana Real Estate Regulatory Authority directing payment of delayed possession compensation and delivery of flats. The developers deposited nearly ₹2.9 crore with the Supreme Court Registry last week after the court warned that top management could face imprisonment for defying orders. Earlier this month, the top court froze the bank accounts of Parsvnath Hessa, Parsvnath Developers, their directors, and senior officials after finding that repeated recovery proceedings by the regulator had failed to secure funds for affected buyers.
