MahaRERA Orders ₹90 Crore Recovery from Palais Royale Promoter in Mumbai
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered the recovery of nearly ₹90 crore from Honest Shelters Pvt Ltd, the promoter of the Palais Royale project in Worli, Mumbai, for non-compliance with earlier directives regarding delayed possession of flats.
MahareraPalais RoyaleHonest SheltersIifl FinanceLuxury Real EstateReal Estate MumbaiAug 16, 2025
MahaRERA’s adjudicating officer, Ashok Alaspurkar, issued four separate orders for the recovery of interest payments related to four flats in the project. Additionally, recovery orders were passed for three more flats belonging to IIFL Finance. Collectively, these warrants account for about ₹90 crore in dues. The orders were issued on different dates, including July 27, July 28, and August 4, as reported by the Times of India.
The January 16 order 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 the project's completion. However, IIFL Finance reported non-compliance on March 21 and later sought enforcement through MahaRERA, leading to 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 project, a prominent part of Mumbai’s luxury real estate landscape in Worli, has been mired in disputes, leaving buyers and financiers in a state of 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. The recovery orders highlight the regulatory body’s commitment to ensuring that developers adhere to their legal and financial responsibilities, providing some relief to affected stakeholders in the process.
Frequently Asked Questions
What is MahaRERA?
MahaRERA, or the Maharashtra Real Estate Regulatory Authority, is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016, to protect the rights of homebuyers and promote transparency in the real estate sector in Maharashtra.
What is the Palais Royale project?
Palais Royale is a luxury residential skyscraper project located in Worli, Mumbai. It has faced multiple legal, financial, and construction setbacks, leading to delays in possession and completion.
Who is Honest Shelters Pvt Ltd?
Honest Shelters Pvt Ltd is the current promoter of the Palais Royale project in Worli, Mumbai. They have been ordered by MahaRERA to pay nearly ₹90 crore for non-compliance with earlier directives.
What is IIFL Finance Ltd's role in this case?
IIFL Finance Ltd is a financier that had complained about non-compliance with a January 16 order from MahaRERA. They filed an execution application leading to the latest recovery orders.
What does the recovery order entail?
The recovery order from MahaRERA directs the initiation of proceedings to recover nearly ₹90 crore from Honest Shelters Pvt Ltd, including interest payments for delayed possession and completion of pending construction.
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