Archive · 10 Aug 2025
MahaRERA Orders Palais Royale Developer to Pay IIFL Finance
A company called IIFL Finance won a case against a real estate developer, Honest Shelters, regarding a delayed apartment project called Palais Royale in Mumbai.
The court, MahaRERA, ruled that Honest Shelters must pay IIFL a large sum of money because of the delay.
The developer had already failed to give the apartments to IIFL and argued that the court did not have the power to enforce an earlier order.
However, the court disagreed, reinforcing that developers must keep their promises.
This ruling may also help other homebuyers in the project get their money back.
MahaRERA ordered Honest Shelters to pay IIFL Finance interest for delayed possession of seven apartments.
The total interest payable to IIFL Finance exceeds ₹100 crore.
Honest Shelters failed to comply with an earlier order to hand over apartments to IIFL Finance.
MahaRERA rejected Honest Shelters' claim that it lacked the power to enforce the order.
The judgment could set a precedent for interest payouts to homebuyers in the Palais Royale project.
- Who
- Maharashtra Real Estate Regulatory Authority (MahaRERA), IIFL Finance, and Honest Shelters Pvt. Ltd.
- What
- MahaRERA ordered Honest Shelters to pay IIFL Finance interest for delayed possession of apartments in the Palais Royale project.
- When
- The order was passed on August 4, and the delay extends back to January 1, 2014.
- Where
- Mumbai, India, regarding the Palais Royale project.
- Why
- To enforce a previous order and to protect the interests of buyers and financiers against project delays.
Honest Shelters
MahaRERA
MahaRERA's Enforcement Power
Honest Shelters
MahaRERA lacked the authority to enforce its prior order.
MahaRERA
MahaRERA possesses the power to enforce its orders, as stated in the ruling.
- Project Name
- Palais Royale
- Developer
- Honest Shelters Pvt. Ltd
- MahaRERA Order Date
- August 4
- Interest Payable to IIFL
- Over ₹100 crore
- Original Builder
- Shree Ram Urban Infrastructure Ltd
- Apartment Value (for calculation)
- ₹29.48 crore
- Occupancy Clearance Floors
- 53