3 Year Jail to Parsvnath Developers' MD, Directors for Failing To Comply with NCDRC Order: Report
Moneylife Digital Team 08 February 2021
In an important order, the National Consumer Disputes Redressal Commission (NCDRC) has sentenced Parsvnath Developers Ltd's managing director (MD) and other directors to three years' imprisonment, for failing to refund money and for not complying with its decree, says a report.
 
Quoting justice Deepa Sharma, a report from Times of India says, "I have given thoughtful consideration to the rival contentions. It is a decree against the judgement debtor (JD) Parsvnath Developers. The JD has failed to comply with the decree despite getting several opportunities. They have not honoured their own undertakings and it seems that the special leave petition (SLP) has been filed in the Supreme Court with the sole intention to delay the payment of decretal amount. Moreover, there is no stay of the execution."
 
The bench, however, gave time till 10th February to Parsvnath Developers to deposit the entire amount decreed by NCDRC earlier, saying only then will the warrant of arrests not be executed.
 
Earlier in 2019, the NCDRC had asked Parsvnath Developers to refund to homebuyers the principal amount along with 12% interest for the deficiencies in service and unfair trade practices in terms of complaint cases filed by five complainants, all retired army officers. 
 
The complainants said they had booked flats with Parsvnath at Privilege Project in Noida, but never got possession.  
 
During the hearing before the NDDRC, advocate Manoranjan, the counsel of Parsvnath Developers informed that the company has challenged the Commission's order before the apex court, which is likely to come up for hearing on 10th February. Parsvnath was ready to pay 20% of the amount as directed earlier by the NCDRC but had not received any response from the complainants, advocate Manoranjan told the bench. 
 
However, counsels for the complainants senior advocate APS Ahluwalia and advocate SS Ahluwalia, contended that Parsvnath Developers has been seeking repeated adjournments and giving undertakings to comply with the order, but did not honour his own undertaking. 
 
Justice Sharma from the NCDRC observed that despite the direction of the commission to furnish the name of the MD and directors, the JD has failed to comply with this direction.
 
The bench then sentenced MD and other directors of Parsvnath Developers to three years' imprisonment.
 
Comments
spicesich
10 months ago
THEY WILL SIT IN JAIL WITH ALL AMENITIES BUT WHAT ABUT THE BUYERS?
Ramesh Popat
10 months ago
TOO LESS TOO LATE!
tillan2k
10 months ago
They are privileged lot and son in law of Political operatives to have sense of immunity ...
rajoluramam
10 months ago
Frequent adjornments of the cases
is the main reason for the delay in our judicial system. Companies mainly request for adjornments to delay the payments, when they are at fault. That too, only company pays the legal fees to the lawers. The poor judgement debtor suffers as he has to pay to the lawyer from his pocket. He goes on making rounds around the court at no fault of him.
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