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The Gujarat High Court has reopened contempt proceedings against Pacifica Developers and its top executives after lifting a stay on a 60-day civil prison order issued by GujRERA. The case involves non-delivery of a booked flat and its alleged resale to another party. Despite initially promising a settlement and depositing INR 24 lakh, the developer failed to file the required appeal. The court viewed this as an abuse of process and ordered the release of the deposit to the homebuyer, while sending the contempt matter to a division bench for further action.
The Gujarat High Court has resumed contempt proceedings against Pacifica Developers Pvt Ltd, including its Managing Director Rakesh Israni, for failing to hand over possession of a flat and allegedly reselling the same unit to someone else. The court lifted an earlier stay on a GujRERA order that had directed 60 days of civil imprisonment for non-compliance. Advertisement
The issue traces back to 2019, when GujRERA had directed Pacifica to hand over possession of the flat booked by a buyer. After repeated failure to comply, the regulator issued a civil detention order in 2022. In response, Pacifica proposed a settlement and deposited INR 24 lakh with the court, seeking a stay on the prison order.
The High Court had initially accepted this settlement proposal and stayed the detention. However, it was later revealed that the developers never followed through with the appeal they had committed to file before the RERA Appellate Tribunal. This inaction led the complainant to allege that the developer was using the court stay as a delay tactic.
Upon review, the court found the conduct of the developers to be misleading and an abuse of the legal process. It has now directed the contempt proceedings to be taken up by a division bench and ordered that the deposited INR 24 lakh be immediately released to the complainant. The contempt action has been initiated against Rakesh Israni, Darpan Tarwani, Kaushik Patel, and Jay Chandani senior officials associated with the project.
This case highlights the consequences of not complying with regulatory and legal commitments in real estate disputes and the personal accountability that may follow in cases involving consumer rights and judicial integrity.
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