High Court Stays Property Auction, Orders Kalash Builders to Deposit ₹15 Lakh
The Nagpur Bench of the Bombay High Court has granted interim relief to Kalash Builders by staying the property auction scheduled for May 26, 2025, on the condition that they deposit ₹15 lakh with the Tehsildar. The auction was initiated due to the builder's failure to deposit ₹1.08 crore as directed by the Maharashtra Real Estate Regulatory Authority (RERA).
Property AuctionKalash BuildersMaharashtra ReraNagpur High CourtInterim ReliefReal Estate MaharashtraMay 27, 2025
The auction was initiated due to the builder’s failure to deposit ₹1.08 crore as directed by the Maharashtra Real Estate Regulatory Authority (RERA), Mumbai. A notice regarding the auction was issued by the Tehsildar on May 15, 2025.
Challenging this notice and seeking a stay on the auction, Kalash Builders filed a petition before the High Court. After hearing the matter, Justice Praveen Patil ordered interim relief and instructed the builder to deposit ₹15 lakh as a precondition.
Notices were issued to several parties, including:
- Principal Secretary, Revenue & Forest Department
- District Collector
- Tehsildar
- Secretary, Maharashtra RERA
- Priyesh Vijayvargiya, Ashok Vijayvargiya, and Rekha Vijayvargiya
The petitioner’s argument was based on the violation of Section 194(2) of the Maharashtra Land Revenue Code, 1966. This section mandates that no sale of immovable property can take place within 30 days from the issuance of such a notice. The key points highlighted in the petition were:
- The notice was dated May 15, 2025
- The office outward register entry shows May 19, 2025
- The notice was received by the petitioner on May 21, 2025
- The auction was scheduled for May 26, 2025
Thus, the 30-day mandatory waiting period was not observed, the petition argued.
The High Court noted that the disputed notice was based on RERA’s earlier orders dated May 21, 2019, June 23, 2022, and March 8, 2022, which directed Kalash Builders to deposit ₹1,08,36,843 into the account of Priyesh Vijayvargiya. The petitioner informed the court that they had already deposited ₹10,65,186 with the Tehsildar on March 26, 2025, and were willing to comply with the remaining payment as per RERA’s directives.
Taking this into account, the court:
- Granted interim stay on the auction
- Ordered notices to all respondents
- Directed the petitioner to submit records and evidence in support of their claims
The court also warned that failure to comply with the orders may result in the automatic cancellation of interim relief without further notice.
Frequently Asked Questions
What was the reason for the property auction?
The property auction was initiated due to Kalash Builders' failure to deposit ₹1.08 crore as directed by the Maharashtra Real Estate Regulatory Authority (RERA).
What did the High Court order Kalash Builders to do to get interim relief?
The High Court ordered Kalash Builders to deposit ₹15 lakh with the Tehsildar to get interim relief and stay the auction.
Who issued the notice for the auction?
The notice for the auction was issued by the Tehsildar on May 15, 2025.
What legal provision did Kalash Builders argue was violated?
Kalash Builders argued that the Tehsildar’s notice violated Section 194(2) of the Maharashtra Land Revenue Code, 1966, which mandates a 30-day waiting period before the sale of immovable property.
What was the court's decision regarding the auction?
The court granted interim stay on the auction, ordered notices to all respondents, and directed the petitioner to submit records and evidence in support of their claims.
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