The Maharashtra Real Estate Regulatory Authority (MahaRERA) has initiated strong enforcement measures against Palais Royale’s developer, Honest Shelters Pvt Ltd, over unpaid interest exceeding Rs 100 crore owed to finance & investment services companies IIFL Finance Ltd and IIFL Management Services Ltd.
In a January 16, 2025 directive, MahaRERA instructed the developer to hand over eight luxury flats in the Worli-based Palais Royale tower, complete with occupancy certificates, and to clear interest liabilities as per Section 18 of the Real Estate (Regulation and Development) Act, 2016.
The authorities had given a 60-day deadline for compliance.
The developer’s failure to meet these terms led to IIFL filing execution applications. Acting on these, MahaRERA’s adjudicating officer has now issued recovery warrants under Section 40(1) of the RERA Act, enabling the District Collector to recover the amount as arrears of land revenue.
This process may involve attaching the company’s assets, freezing accounts, or other statutory enforcement actions.
Legal professionals say the order underlines MahaRERA’s readiness to use its full authority to protect buyers and financiers from prolonged defaults.
Once marketed as India’s tallest premium residential project, the Palais Royale development has faced more than a decade of delays, legal disputes, and investor grievances.
The latest action is being seen as a significant step towards providing long-awaited relief to stakeholders.
Binay Kumar Mishra, Chief Legal Officer at IIFL Finance, said that the decision reaffirms the obligation of developers towards their commitments and assured that IIFL will continue pursuing legal avenues to safeguard its interests.
With each of the eight flats estimated at around Rs 80 crore in market value — making their total worth nearly Rs 650 crore — and interest dues topping Rs 100 crore, attention now turns to how swiftly the Collector’s office can execute the recovery.
Industry watchers say the case could influence how stalled and defaulting projects are tackled across Maharashtra in the future.
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