Authority: Supreme Court of India

Order Date: 03 September 2026

Case Overview

  • Parties: Petitioners – Shashi Kant Singh & others; Respondents – State of Haryana & others, including Chintel India Pvt Ltd (CIPL) as developer.
  • Background: The residential group housing project “Chintel Paradiso” in Sector‑109, Gurugram, spans ~12.306 acres with 532 flats (total super area ~1,100,084 sq ft) across nine towers (Phase‑I: D, E, F, G, H; Phase‑II: A, B, C, J). Possession offered in 2016 (Phase‑I) and 2018 (Phase‑II). After occupation, structural defects emerged; on 10‑02‑2022 a portion of Flat 603 in Tower D collapsed, killing two occupants. FIR No. 27 dated 11‑02‑2022 was filed and later referred to CBI.
  • Prior Litigation: Writ Petition (Civil) No. 273 of 2022 (Manoj Singh & Ors. v. Chintel India Pvt Ltd & Ors.) sought structural audit, criminal investigation, rehabilitation, alternate accommodation, and compensation. The Court, on 04‑01‑2024, recorded two rehabilitation options: (i) Buy‑back at Rs 6,500 per sq ft plus interior costs, stamp duty, shifting charges, and rent for alternate accommodation; (ii) Reconstruction of unsafe towers with rent determined by a committee headed by the Divisional Commissioner, Gurugram.
  • Current Proceedings: Subsequent writ petition (Civil) No. 245 of 2025 and related contempt/intervention applications raised implementation grievances. The Court, on 21‑04‑2026, directed parties to explore an amicable settlement.
  • Stakeholder Positions: Out of 532 owners, 196 have exercised the buy‑back option, 164 have signed redevelopment agreements, leaving 172 owners yet to decide. Approximately 80‑90 occupants still occupy unsafe flats despite demolition of all Phase‑I towers (D‑H).

Final Outcome

  • Settlement Framework: The Court records the parties’ consensus on the following terms:

1. CIPL is in advanced talks with Sobha Ltd; redevelopment will be executed under a Sobha Redevelopment Agreement.

2. Phase‑II homeowners will contribute Rs 1,000 per sq ft, subject to Sobha undertaking redevelopment; no hidden financial burden.

3. Redeveloped apartments for existing owners will retain the same carpet area with a permissible variation of ±3%, and will match the product specifications, quality, branded materials, finishes, fixtures, fittings, and amenities offered by Sobha to new customers. Allocation will be within the existing Phase‑II land/towers (A, B, C, J).

4. Physical handover of redeveloped apartments must be completed within 48 months from the commencement date.

5. CIPL/Sobha may utilise the maximum FAR, TDR, and other development potential legally permissible.

6. One‑time relocation charge of ₹40,000 per homeowner (Towers A‑J) as decided by the District Administration, payable irrespective of vacancy timing.

  • Vacancy & Possession: All occupants of unsafe towers must vacate and hand over peaceful possession by 01‑01‑2027. No extensions will be entertained.
  • Rent & Escrow:
  • CIPL must pay fixed rent for alternate accommodation to eligible homeowners effective 31‑01‑2027 until actual possession of redeveloped units.
  • An escrow account of ₹5,00,00,000 (Rs 5 crore) is to be created initially to secure rental obligations. The escrow balance will be reviewed every six months, and CIPL may be required to replenish it as needed.
  • Homeowners who vacated before 31‑01‑2027 are not entitled to rent retrospectively.
  • Reconstruction Timeline: Redevelopment/reconstruction work must commence on or before 31‑03‑2027 and be completed within the 48‑month window starting 01‑01‑2027.
  • Buy‑Back Option: Any flat owner wishing to sell under the buy‑back offer may do so on mutually agreed terms.
  • Jurisdictional Safeguard: All disputes, grievances, or claims arising from the approved redevelopment framework must be filed exclusively before this Court; no other court or authority may pass restraining orders that could impede implementation.
  • Disposition: The writ petitions and contempt petitions are disposed of; any pending interlocutory applications are also disposed.

Topics: Settlement, Redevelopment, Housing Safety