MUMBAI: The MahaRERA adjudicating officer has issued four warrants aimed at recovering approximately ₹90 crore in interest from Honest Shelters Pvt Ltd, the current promoters of the Palais Royale project in Worli.
The warrants pertain to four flats in the project, following an application from IIFL Finance Ltd regarding non-compliance with a January 16 directive. The officer also issued warrants for delayed possession concerning three additional flats associated with IIFL in the same development.
The adjudicating officer, Ashok Alaspurkar, issued the orders on various dates, including August 4, July 28, and July 27, to recover different interest amounts related to seven flats owned by IIFL Finance.
Previously, on January 16, MahaRERA had mandated Honest Shelters to hand over possession of the flats to IIFL Finance Ltd, as well as compensating for delayed possession. It also directed the official liquidator to return possession of flats in his custody to the promoter for construction completion.
On March 21, IIFL Finance reported the non-compliance of this order and filed an execution application. The promoter contested the jurisdiction of the adjudicating officer but these arguments were dismissed by MahaRERA.
The adjudicating officer remarked that based on the relevant facts, the January 16 order must be enforced as dictated. He ruled that the complainant is entitled to interest on amounts paid for various flats until January 16, and further interest from January 17 until possession is provided after obtaining the occupancy certificate.
The Palais Royale project was acquired by Honest Shelters from Shree Ram Urban Infrastructure after an auction by Indiabulls Housing Finance in 2019. IIFL secured the flats from the original purchasers through a deed of transfer due to breaches in the mortgage agreements. MahaRERA confirmed that the previous allottees had fully paid for their flats according to the agreements, and that IIFL is an allottee of these units, observing that the promoter failed to deliver possession along with the necessary occupancy certificate by the specified date.
