Maharashtra Real Estate Regulatory Authority (MahaRERA) orders developer Honest Shelters to repay ₹90 crores for the delayed delivery of Palais Royale project in Worli, Mumbai.
The Palais Royale project, once heralded as India's first super-luxury residential skyscraper, is once again under the spotlight due to ongoing enforcement measures. The project, located in Worli, Mumbai, is currently facing enforced recovery orders from Maharashtra Real Estate Regulatory Authority (MahaRERA) against its promoter, Honest Shelters Pvt Ltd, due to significant delays in possession.
MahaRERA has ordered the recovery of approximately Rs 90 crore from Honest Shelters for failing to comply with earlier directives regarding delayed possession of flats in the Palais Royale project. These recovery orders follow an execution application filed by IIFL Finance Ltd, which had complained of non-compliance with a January 16 order.
The recovery orders were issued by MahaRERA's adjudicating officer, Ashok Alaspurkar, on different dates, including July 27, July 28, and August 4. The orders direct warrants for recovery of interest payments related to a total of seven flats in the Palais Royale project. For IIFL Finance, this step provides a means to recover interest payments related to the delayed possession of their flats in the Palais Royale project.
The ongoing enforcement measures against Honest Shelters are a result of their non-compliance with earlier orders. The warrants for recovery issued by MahaRERA allow for the initiation of proceedings that are similar to revenue recovery. The proceedings aim to compel Honest Shelters to meet their obligations regarding the delayed possession of flats in the Palais Royale project.
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. However, Honest Shelters failed to comply with this order, leading to the current situation.
Despite these setbacks, Palais Royale remains under construction and is expected to be completed in 2025, when it will become the tallest and biggest building in India at 320 meters tall. The project, although plagued by delays and disputes, continues to hold architectural significance and is part of Mumbai's luxury real estate landscape.
Recent transactions indicate some activity in the project’s luxury apartment market, with notable buyers from the pharma sector acquiring units directly from Honest Shelters, signaling market interest in the property despite its troubled history.
In summary, the current status is that the project is struggling with legal enforcement actions due to possession delays, with MahaRERA actively pursuing recovery from the promoter. However, on the future outlook, Palais Royale is still expected to be completed in 2025 and remains a landmark in Mumbai’s luxury real estate scene, supported by ongoing high-end sales activity.
[1] Times of India [2] Economic Times [3] India Today [5] Moneycontrol
- IIFL Finance Ltd, a financial institution, is obtaining recovery orders from MahaRERA in relation to unpaid interest payments for flats in the Palais Royale project in India, due to delays in possession by the promoter, Honest Shelters Pvt Ltd.
- Despite ongoing legal issues, the Palais Royale project in Mumbai's luxury real-estate market continues to attract investment, as noted by notable buyers from the pharma sector.
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