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.
Related News Articles
Honoring Excellence in Indian Real Estate: Realty+ Women Icon Awards 2024
Realty+ celebrates women leaders in Indian real estate, pushing boundaries and driving growth.
Empowering Marginalized Communities through Climate-Resilient Housing in Pune
Habitat for Humanity India hands over 15 climate-resilient homes to vulnerable families in Pune's Khed taluka
NBCC Moves to Complete Stalled Supertech Projects, Affecting 27,000 Homebuyers
India's stalled real estate projects have left around 500,000 housing units in limbo. NBCC's proposal to complete Supertech's projects could bring relief to 27,000 homebuyers.
Supreme Court Asks Union and Maharashtra to Review Sahara’s Versova Plot Status
The Supreme Court has directed the Union Environment Ministry and the Maharashtra government to provide information about the status of Sahara India Commercial Corp's 106-acre plot in Versova, Mumbai. The court is reviewing the plot's potential for develo
The Uncertain Future of the Kashmir Hangul: A Closer Look
The Kashmir Hangul, a critically endangered species of red deer, faces an uncertain future with fewer than 400 animals remaining in the wild. Recent research conducted in Dachigam National Park sheds light on the challenges and possible solutions for thei
Mumbai, Pune, and Six Other Indian Cities Expected to See Decline in Home Prices
Mumbai and Pune, along with five other major Indian cities, are predicted to witness a drop in property prices due to a combination of economic factors and persistent global uncertainties, as reported by real estate consultancy ANAROCK.