Two of country’s biggest listed real estate developers lined up at the Supreme Court today in anticipation of a favorable order. The apex court was hearing appeals by builders against the top consumer court, the National Consumer Disputes and Redressal Commission’s recent verdicts favouring hundreds of distressed homebuyers. Soon enough, it was clear that the day was going to turn out badly for the developer community.

Parsvnath Asked To Refund Money

In a major relief to thousands of home buyers, the apex court has asked Parsvnath Developers to refund money to 70 home buyers of its ‘Exotica’ Project in Ghaziabad. The Supreme Court has asked the company to come out with a refund schedule in its next hearing scheduled for September, 15th, 2016.

In May this year, the National Consumer Disputes and Redressal Commission had asked the developer to refund the principal amount to the buyers with 12% per annum interest after which the developer had moved Supreme Court seeking relief. The company had argued that it wishes to complete the project and honour the agreement, and, wanted more time.

Parsvnath Exotica project in Ghaziabad was launched in 2007 and the possession was promised by the end of 2011. The project has a total of 854 flats.

This is the second time this month that the Supreme Court has come down heavily on defaulting developers. Earlier this month, the Supreme Court had asked Unitech to deposit Rs. 15 crore against the principal amount for failing to deliver one of its projects Unitech Vistas in Gurgaon. Unitech has to deposit the amount by the end of September.

SC Gives Ultimatum to DLF

In another hearing today, the Supreme Court has ordered country’s largest developer, DLF, to hand over the possession of its ‘DLF Valley’ Project in Panchukla, Haryana by November 30th. DLF had also appealed against NCDRC’s order where the forum had asked the company to give 12% pa interest to the buyers for the delay period.

50 homebuyers had approached the consumer court after the developer continued to default on delivery since 2013. Supreme Court while hearing the matter has given some respite to the developer by cutting down the penalty interest from 12% to 9%.

Reporter- Chanakya Bhatia, NDTV
Edited by- Neetika Bajaj & Nikhil Narayan Sivadas, NDTV