Mumbai: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered recovery of nearly Rs 90 crore from Honest Shelters Pvt Ltd, the current promoters of the Palais Royale project in Worli, for failing to comply with earlier directives regarding delayed possession of flats. The action follows an execution application filed by IIFL Finance Ltd, which had complained of non-compliance with a January 16 order.
MahaRERA’s adjudicating officer, Ashok Alaspurkar, issued four separate orders directing warrants for recovery of interest payments related to four flats in the project. In addition, recovery orders were also passed for three more flats belonging to IIFL Finance. Collectively, the warrants account for about Rs 90 crore in dues, reported Times of India. The orders were issued on different dates, including July 27, July 28 and August 4.
The January 16 order had directed Honest Shelters to hand over possession of IIFL’s flats in the Palais Royale project, pay interest for the delay, and complete pending construction. The order also instructed the official liquidator to hand over flats in his custody to the promoter to ensure completion. However, IIFL Finance reported non-compliance on March 21 and later sought enforcement through MahaRERA, which has now resulted in the latest recovery orders.
Palais Royale, once touted as India’s first super-luxury residential skyscraper, has faced repeated legal, financial and construction setbacks over the years. The towering project, a prominent part of Mumbai’s luxury real estate landscape in Worli, has been mired in disputes, leaving buyers and financiers caught in uncertainty.
With MahaRERA’s latest directives, warrants for recovery empower authorities to initiate proceedings similar to revenue recovery, compelling promoters to meet their obligations. For IIFL Finance, this step secures a path to claim pending interest dues on delayed possession.
For now, Honest Shelters faces mounting scrutiny as enforcement measures move forward, with the fate of the beleaguered Palais Royale project again under the spotlight.
