he Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered the recovery of nearly ₹90 crore from Honest Shelters Pvt Ltd, the current promoters of the Palais Royale project in Worli, citing failure to comply with earlier directives regarding delayed handover of flats. The action follows an execution application filed by IIFL Finance Ltd, which highlighted non-compliance with a January 16 order.
MahaRERA’s adjudicating officer, Ashok Alaspurkar, issued four separate orders directing the issuance of warrants to recover interest payments for four flats in the project. Additional recovery orders were also passed for three more flats belonging to IIFL Finance. Together, these recovery warrants account for approximately ₹90 crore in dues, according to reports from the Times of India. The orders were issued on multiple dates, including July 27, July 28, and August 4.
The January 16 directive had instructed Honest Shelters to hand over possession of IIFL’s flats, pay interest for the delays, and complete all pending construction work. The order further directed the official liquidator to release any flats in his custody to the promoter to facilitate completion. However, IIFL Finance reported non-compliance on March 21 and subsequently sought enforcement through MahaRERA, which led to the latest recovery measures.
Palais Royale, once promoted as India’s first super-luxury residential skyscraper, has experienced repeated delays, legal disputes, and financial challenges over the years. The project has remained a focal point of Mumbai’s high-end residential real estate segment, yet persistent issues have left both buyers and financiers in prolonged uncertainty.
With the latest recovery orders, MahaRERA has empowered authorities to initiate proceedings akin to revenue recovery, enabling direct enforcement of dues. This step ensures that IIFL Finance has a clear path to claim interest accumulated due to delayed possession. Recovery warrants under such directives are intended to hold promoters accountable and compel them to fulfill their obligations toward buyers and financiers.
The enforcement of these measures comes amid mounting scrutiny of Honest Shelters’ management of the Palais Royale project. The development has faced multiple hurdles in completing construction on schedule, and the regulatory action underscores the challenges surrounding compliance with real estate regulations in high-value projects.
For now, Honest Shelters remains under regulatory oversight, with the fate of Palais Royale once again in the spotlight. Buyers, financial institutions, and market observers continue to monitor the project closely, given its significance in Mumbai’s luxury residential market and its prolonged history of delays and disputes.
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