Haryana RERA Issues Arrest Warrants Against Directors Of Parsvnath Developers
Haryana RERA, Panchkula Bench consisting of Adjudicating Officer Major Phalit Sharma (ADSJ Retd.) has issued arrest warrants against the directors of Parsvnath Developers for failing to comply with the Authority's order to pay Rs.8.6 lakh in compensation to a homebuyer and for evading service of the Authority's notice. Background Facts In 2022, Haryana RERA ordered Parsvnath...
Haryana RERA, Panchkula Bench consisting of Adjudicating Officer Major Phalit Sharma (ADSJ Retd.) has issued arrest warrants against the directors of Parsvnath Developers for failing to comply with the Authority's order to pay Rs.8.6 lakh in compensation to a homebuyer and for evading service of the Authority's notice.
Background Facts
In 2022, Haryana RERA ordered Parsvnath Developers Ltd. (Judgement debtor) to pay Rs.8,63,914 to the homebuyer (Decree Holder) as compensation. Despite this the company did not comply for over three years.
On 03.03.2025, the Authority issued show cause notices to four directors named Mr. Rajeev Jain, Mr. Pradeep Kumar Jain, Ms. Deepa Gupta and Mr. Sanjeev Kumar Jain (Managing Director) under Order XXI Rule 41(2) and (3) CPC asking why they should not face up to three months' civil imprisonment for non-compliance.
The notices were sent to the addresses provided by the company at the time of project registration but three of the directors either avoided service or did not appear in person. The decree holder alleged that the company was deliberately delaying execution while the judgment debtor's counsel sought more time promising to pay the amount in instalments.
Observation and Direction by Authority
Authority observed that the directors failed to comply with directions issued under Order XXI Rule 41(2) CPC by not submitting the required affidavits and not appearing in person to respond to the show cause notices.
Authority noted that the judgment debtor company and its directors despite having sufficient funds had intentionally withheld payment of the decretal amount. The fact that they sought additional time to pay indicated that resources were available but they were deliberately delaying satisfaction of the decree to cause prejudice to the decree holder.
Authority found Mr. Rajeev Jain, Mr. Sanjeev Kumar Jain and Mr. Pradeep Kumar Jain guilty of disobeying its order. It ordered their arrest and three months civil imprisonment to begin once the decree holder deposits Rs.100 per day per director as subsistence allowance.
Lastly, Authority held that action against Ms. Deepa Gupta will be taken after receiving the service report from abroad as her address is outside India and it will also decide on separate proceedings on 13.10.2025 with the arrest warrants to be served through the local courts in Delhi and Gurugram.
Case – VP Batra Versus Parsvnath Developers Ltd.
Citation – Execution No. 2613 of 2022 in Complaint No. 941 of 2021
Counsel for Decree Holder – Mr. Shubhnit Hans, Adv.
Counsel for Judgement debtor - Mrs. Rupali S. Verma, Adv.