MahaRERA orders recovery of ₹100 crore from Palais Royale developer
Once promoted as India’s tallest premium residential project, Palais Royale has been plagued by over a decade of delays, legal disputes, and investor complaints.
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The Maharashtra Real Estate Regulatory Authority (MahaRERA) has launched stringent enforcement proceedings against Honest Shelters Pvt Ltd, developer of the long-delayed Palais Royale tower in Worli, over unpaid interest exceeding ₹100 crore owed to IIFL Finance Ltd and IIFL Management Services Ltd.
In a directive issued on January 16, 2025, MahaRERA instructed the developer to hand over eight luxury flats in the tower—each with an occupancy certificate—and settle interest liabilities in line with Section 18 of the Real Estate (Regulation and Development) Act, 2016. The order provided a 60-day compliance window.
Following the developer’s failure to meet the deadline, IIFL filed execution applications. Acting on these, MahaRERA’s adjudicating officer issued recovery warrants under Section 40(1) of the RERA Act, empowering the District Collector to recover the dues as arrears of land revenue. The process could involve attaching company assets, freezing accounts, or other statutory recovery actions.
Legal experts note that the move underscores MahaRERA’s willingness to exercise its full authority to safeguard both buyers and financiers from prolonged defaults.
Once promoted as India’s tallest premium residential project, Palais Royale has been plagued by over a decade of delays, legal disputes, and investor complaints. The latest enforcement action is seen as a major step toward delivering long-overdue relief to stakeholders.
Binay Kumar Mishra, Chief Legal Officer at IIFL Finance, said the decision “reaffirms the obligation of developers towards their commitments” and added that IIFL will continue to pursue legal measures to protect its interests.
With each of the eight flats valued at around ₹80 crore—placing their combined market worth at nearly ₹650 crore—alongside interest dues exceeding ₹100 crore, attention now shifts to how quickly the Collector’s office can execute the recovery.
Industry analysts say the case could set a precedent for handling stalled and defaulting real estate projects across Maharashtra.
