Supreme Court Orders Chandigarh to Refund Parsvnath in Failed Film City Venture

The Supreme Court has instructed Chandigarh's administration to refund Rs 47.75 crore, plus interest, to Parsvnath Developers Ltd's subsidiary, PFCL, due to the stalled Film City project. The failure to transfer land for the project prompted PFCL to seek compensation, costs, and interest. The payment deadline is June 30, 2025.

The Supreme Court has issued a directive ordering the Chandigarh administration to refund Rs 47.75 crore, in addition to interest, to the subsidiary of Parsvnath Developers Ltd, known as PFCL. This move comes after the planned Film City project near Chandigarh failed to commence.

According to documents filed with regulators, PFCL was initially formed to develop a Multi-media-cum-Film City project on land supposed to be provided by the Chandigarh administration. However, the administration failed to transfer possession of the land as per the development agreement, leading PFCL to seek reimbursement and damages.

Upholding PFCL's appeal, the Supreme Court has mandated Chandigarh Administration to repay the initial deposit amounting to Rs 4,775 lakhs with an annual interest of 8%, calculated from the date of the deposit. The ruling further mentions an increased interest rate if the amount is not paid by June 30, 2025.

(With inputs from agencies.)