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MahaRERA has issued recovery warrants amounting to nearly INR 90 crore against Honest Shelters Pvt Ltd, the promoter of the long-delayed Palais Royale project in Mumbai. The action follows the developer's failure to comply with directives to hand over seven flats to IIFL Finance Ltd with an occupancy certificate and to pay interest for delayed possession. The orders, passed across multiple hearings, rejected the developer's objections on jurisdiction and firmly upheld IIFL's entitlement to interest until possession was formally transferred. The dispute stems from Honest Shelters taking over the stalled project in 2019 after a INR 705 crore auction by Indiabulls Housing Finance.
MahaRERA has intensified enforcement in the Palais Royale dispute, issuing recovery warrants of about INR 90 crore against Honest Shelters Pvt Ltd after the developer failed to comply with earlier directives. The orders relate to delayed possession of seven flats purchased by IIFL Finance Ltd, where interest continues to accrue until possession with an occupancy certificate is delivered. Advertisement
Between late July and early August, four separate warrants were issued for four flats, followed soon after by three more, bringing the total to seven. Each order directed recovery of substantial sums towards interest payments, underscoring the growing liability of the promoter.
The adjudicating officer's earlier directive had made it clear that Honest Shelters must hand over possession with the necessary occupancy certificate while compensating IIFL for years of delay. The company's claim that the officer lacked jurisdiction was dismissed outright. MahaRERA held that IIFL, having stepped into the shoes of the original allottees who had completed their payments, remained entitled to all benefits under the law, including ongoing interest until final handover.
This long-running dispute goes back to 2019, when Honest Shelters took over Palais Royale after winning the project in a INR 705 crore auction conducted by Indiabulls Housing Finance. The project, once envisioned as Mumbai's tallest residential tower, has been plagued by litigation, funding challenges, and repeated delays. IIFL acquired rights to multiple flats through registered transfer deeds from the initial allottees, and its position as a legitimate allottee has been repeatedly affirmed in hearings.
The repeated recovery orders now reflect MahaRERA's firm stance on compliance. For Honest Shelters, the pressure to deliver possession and settle financial obligations has only grown sharper, as the regulator continues to monitor execution closely.
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