Consumer panel sends two Parsvnath directors to judicial custody over unpaid dues of homebuyers

The Commission noted that arrest warrants had been issued against the directors in five cases, while they had been declared proclaimed offenders in seven others. In another 34 cases, proceedings to declare them proclaimed offenders had been initiated. (File)

The Delhi State Consumer Disputes Redressal Commission has sent two directors of Parsvnath Developers to two-week judicial custody, until November 18, in connection with 46 pending cases involving unpaid refunds and compensation to homebuyers.

Observing that they had been “evading the process of law in various cases”, the Commission – in its November 4 order – noted that the directors, Sanjeev Kumar Jain and Rajeev Jain, had issued cheques to homebuyers that were dishonoured when presented for payment.

The order was passed by a Bench comprising Justice Sangita Dhingra Sehgal, president of the Commission, and member Bimla Kumari.

The matter came up after a homebuyer, Abhishek Mundhra, sought to withdraw an execution petition against the company following an out-of-court settlement of Rs 1.25 crore. The company had issued five post-dated cheques of Rs 25 lakh each as part of the settlement.

The Commission, however, refused to allow the withdrawal, noting that “no settlement deed… has been placed on record” and that the cheques were yet to be encashed.

“It is significant to note that the JDs (judgment debtors/directors) who are present in court have been evading the process of law in various cases. They have issued cheques to the DH/DHs (decree holders/homebuyers) and the same were dishonoured on presentation,” the Commission observed.

The two directors were already in custody when the matter was heard. They had been taken into custody earlier in November in relation to the same case and were produced before the Commission by the Delhi Police Crime Branch from Tihar Jail.

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The directors had also sought release from judicial custody, citing the settlement. However, the Commission said no settlement deed had been submitted along with the application seeking withdrawal of the execution petition.

Taking up 46 pending execution cases against the company suo motu, the Commission noted that the amounts awarded to homebuyers remained unpaid. “All the above mentioned matters are taken up suo motu since the JD has not cleared the decretal amount in these cases and execution petitions are still pending. Both the Directors of the JD, namely Mr Sanjeev Kumar Jain and Mr Rajeev Jain, are taken into custody in all these matters,” it said.

The Commission noted that arrest warrants had been issued against the directors in five cases, while they had been declared proclaimed offenders in seven others. In another 34 cases, proceedings to declare them proclaimed offenders had been initiated.

Refusing to grant relief until the settlement cheques were cleared, the Commission ordered that both directors remain in judicial custody and be produced before it at 12.30 pm on November 18.

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Nirbhay Thakur is a Senior Correspondent with The Indian Express who primarily covers district court... Read More