by THO
Sanjeev Jain, Managing director and CEO of Parsvnath Developers Private Limited and a resident of DLF Phase-2, Gurugram, was taken into custody by Delhi Police on August 3 following warrants issued by the National Consumer Disputes Redressal Commission (NCDRC).
The consumer commission had issued warrants against him on July 18 after Jain failed to appear in a case.
1 Who is Sanjeev Jain?
Jain is the chief executive officer of Parsvnath Landmark Developers, a subsidiary of PDPL, and warrants against him were issued in connection with a case filed by a consumer Rajat Babbar in 2017 where Jain’s company had been accused of failing to fulfill its obligations to the complainants, leading to the issuance of multiple legal actions against him.
Sanjeev Jain has been associated with the company for more than 30 years.
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Police initially got information that Jain was in his Gurugram residence. By the time a police team reached his residence, the accused had left for Delhi. Local sources informed the police team that Jain was at the Indira Gandhi International (IGI) airport, from where he was nabbed.
“Four non-bailable warrants and one bailable warrant from the National Consumer Disputes Redressal Commission were pending at the Shahdara police station against Jain,” the statement said, adding that he was produced before the commission on August 4.
On August 5, 2024, Parsvnath Developers Limited responded, saying that the non bailable warrants issued against Sanjeev Jain were due to a default in repayment of the refund amount.
Their statement said, “Subsequently, the Company has deposited the decretal amount on the Court’s record, and accordingly, the matter regarding non-bailable warrants is now resolved.”
Also Read: Why was the CEO of realty firm, Sanjeev Jain, arrested after a 60-km-long chase?
The company also clarified that neither them nor Jain were trying to escape responsibility in the case and would follow the directions of the court.
2 The back story
According to the company’s website, the parent company was incorporated on July 24, 1990 under the Companies Act, 1956 as ‘Parsvnath Developers Limited’ and obtained the Certificate of Commencement of Business on November 20, 1990.
3. Real estate projects
The company has residential projects across Greater Noida, Ghaziabad,, Lucknow, Dharuhera, Moradabad, Agra, Rajpura, Ujjain among others. It has also constructed retail projects in Ghaziabad, Rohini, Faridabad, Sonepat and a few mall properties for DMRC in Azadpur and Akshardham metro stations.
According to the UPRERA website the company has close to 21 real estate projects in Uttar Pradesh spread across Ghaziabad (Exotica Phase 1, 2, 3), Lucknow (Royal Floors, Planet Plaza), Moradabad (Prathibha), Agra (Prerna Plaza), Saharanpur (Royal Villas, Elite Floors) and Gautam Buddha Nagar (Privilege 1,2, 3,4, Palacia Phase 1 and 2) among others.
Also Read: NCLAT rejects insolvency plea against Parsvnath Landmark Developers
In Haryana, the company has projects spread across Gurugram (Exotica, Green Ville, Presidency, Arcadia), Sonepat, Panipat, Panchkula, Karnal among others.
4. BSE had recently sought a clarification with reference to significant movement in scrip price
On August 1, 2024, the Bombay Stock Exchange had sought a clarification from Parsvnath Developers Ltd with reference to significant movement in price, in order to ensure that investors have latest relevant information about the company and to inform the market so that the interest of the investors is safeguarded.
On August 2, the company had responded saying “that there is no such price sensitive information / announcement which led to present movement in prices and which in our opinion bearing movements on the price behavior in the scrip. Recently the price movement/fluctuations in scrip are completely due to market behavior,” according to a regulatory filing by the company.
5. SC recently upheld the NCDRC order concerning the company’s luxury project in Delhi
On July 29, the Supreme Court had upheld the NCDRC’s order directing Parsvnath to refund ₹1.31 crore to flat buyers in Delhi due to significant project delays. The bench also increased the rate of interest from 9% awarded by NCDRC to 12% saying that the buyers had been made to suffer for long for no fault of theirs.
The buyers had paid 95% of the flat’s cost between 2008 and 2013, but the developer failed to deliver the flats within the agreed 36 months.
The homebuyers had challenged the NCDRC order dated September 29, 2022 that had partly allowed the complaint and had directed Parsvnath Developers Ltd to refund the amount with an interest at the rate of 9% per annum from the date of the refund. The case pertained to a complaint filed by buyers with regard to a group housing project called Parsvnath Paramount in Subhash Nagar that was launched in 2008. Homebuyers had booked 3BHK flats in the project and paid close to ₹16 lakh as initial amount and the rest as per the payment plan.
6. Other cases before the consumers commission
In 2019, the consumer court had directed Parsvnath to refund the principal amount to homebuyers along with an interest at the rate of 12% for the deficiency in service and unfair trade practices following complaints filed by five buyers who were all retired army officers.
Aditya Parolia, advocate, PSP Legal, who has handled cases of more than 80 homebuyers invested in real estate projects by the developer said that, “developers who do not honour the court decree should be taken to task,” adding while some projects were completed by the developer initially, there are quite a few that are still pending completion since 2007.
