Haryana RERA Orders Arrest Of Parsvnath Developers’ Directors For Wilful Non-Compliance With ₹8.6 Lakh Compensation Order To Homebuyer
Pranav B Prem
The Haryana Real Estate Regulatory Authority (RERA), Panchkula Bench, through Adjudicating Officer Major Phalit Sharma (ADSJ Retd.), has issued arrest warrants against directors of Parsvnath Developers Ltd. for failing to comply with its earlier order directing payment of compensation to a homebuyer and for deliberately evading service of notices.
Background
The case arose out of Complaint No. 941 of 2021, where on 30.03.2022, Haryana RERA directed Parsvnath Developers Ltd. (Judgment Debtor) to pay ₹8,63,914 to the complainant, Mr. V.P. Batra (Decree Holder). Despite the order, the company failed to comply for over three years, compelling the Decree Holder to initiate execution proceedings.
On 03.03.2025, the Authority issued show cause notices under Order XXI Rule 41(2) CPC to the company’s directors—Mr. Rajeev Jain, Mr. Pradeep Kumar Jain, Ms. Deepa Gupta, and Mr. Sanjeev Kumar Jain (Managing Director)—asking why they should not face up to three months’ civil imprisonment for non-compliance. They were also warned of action under Section 63 of the RERA Act, 2016 for continued disobedience.
Proceedings and Conduct of Directors
The record revealed that notices sent to the directors were avoided on one pretext or another:
The notice to Mr. Pradeep Kumar Jain was served, but he failed to appear.
The notice to Mr. Rajeev Jain was returned with the report that he was not found at the given address despite it being correct.
The notice to Mr. Sanjeev Kumar Jain was returned with the remark “address incomplete or wrong.”
As for Ms. Deepa Gupta, service was pending since her address was outside India.
The Authority held that since the notices were issued at the addresses provided by the company at the time of project registration and no updated information was given, presumption of service under Section 27 of the General Clauses Act, 1897 applied. It concluded that the directors had intentionally avoided service and failed to comply with directions under Order XXI Rule 41(2) CPC.
Rival Submissions
During the hearing, counsel for the Judgment Debtor, Mrs. Rupali S. Verma, and company representative Mr. Pranay Malhotra, sought further time, assuring that 50% of the decretal amount would be paid within 15 days and the balance within another 15 days. They argued that coercive action should not be taken since the company was ready to comply.
On the other hand, counsel for the Decree Holder, Mr. Shubhnit Hans, strongly opposed any adjournment, pointing out that the company had already defaulted for over three years and was deliberately delaying execution. He emphasized that non-appearance of the directors despite notice amounted to willful disobedience, warranting their civil imprisonment.
Authority’s Observations
The Authority found that the Judgment Debtor and its directors had sufficient resources but were deliberately withholding payment to prejudice the Decree Holder. The Tribunal observed: “A person who is not approaching the court with clean hands does not deserve any relief. The disobedient directors should be sent to civil imprisonment for disobeying the order of this quasi-judicial forum, so that a deterrent message is communicated to all like-minded to follow the law and not to misuse it to harm others.” It further noted that repeated requests for adjournments were merely tactics to delay execution and harass the homebuyer. Referring to precedents including M. Ramalingam v. P. Krishnaveni [(2013) 10 SCC 673], Rajesh Kumar Aggarwal v. Kamal Aggarwal [(2018) 14 SCC 625], and K. Bhaskaran v. M.S. Narayanan [(2004) 8 SCC 31], the Authority emphasized that punitive measures are warranted against deliberate violators.
Arrest Warrants Issued
The Authority held Mr. Rajeev Jain, Mr. Pradeep Kumar Jain, and Mr. Sanjeev Kumar Jain guilty of violating its orders and awarded them three months’ civil imprisonment, subject to the Decree Holder depositing a subsistence allowance of ₹100 per day per director as per Haryana Prison Rules, 2022. The warrants of arrest are to be executed through:
City Metropolitan Magistrate, Karkardooma Court (Delhi) – for Rajeev Jain
City Metropolitan Magistrate, Patiala House Court (Delhi) – for Pradeep Kumar Jain
Chief Judicial Magistrate, Gurugram – for Sanjeev Kumar Jain
As regards Ms. Deepa Gupta, the Authority deferred action pending service of notice abroad. It also clarified that the issue of initiating separate proceedings under Section 63 of the RERA Act, 2016 against the company and its directors would be considered on 13.10.2025.
Since the Judgment Debtor failed to comply with the compensation order despite having sufficient resources and deliberately avoided notices, the Authority directed arrest and three months’ civil imprisonment of three directors of Parsvnath Developers Ltd. The proceedings against Ms. Deepa Gupta remain pending. The matter will next be taken up on 09.09.2025 for compliance regarding deposit of subsistence allowance and further directions.
Appearance
Mr. Shubhnit Hans, Adv., for the decree holder through VC.
Mrs. Rupali S. Verma, Adv., for the judgment debtor.
Mr. Pranay Malhotra, Authorized representative of judgment debtor.
Cause Title: VP Batra V. Parsvnath Developers Ltd.
Case No: Execution No. 2613 of 2022 in Complaint No. 941 of 2021
Coram: Major Phalit Sharma [Adjudicating Officer]
