The Maharashtra Real Estate Regulatory Authority (MahaRERA) has given luxury residential project Palais Royale in Worli, Mumbai, an additional year to complete construction and secure an Occupancy Certificate (OC) by December 30, 2024. The decision, aimed at ensuring the project’s completion, comes despite buyer frustration over delays of more than a decade.

The extension was granted to Honest Shelters, the current promoter, following its application on November 23 to revise the possession date. Originally, the project’s completion was scheduled for December 31, 2021, but it had already received three extensions, including those linked to Covid-19 disruptions.

Order Highlights

In its December 28 order, MahaRERA noted that the developer had failed to obtain the mandatory two-thirds consent from homebuyers for the extension and had not updated its Quarterly Progress Reports (QPRs) on bookings, sales and funds collected. Despite these lapses, Chairperson Ajoy Mehta ruled that rejecting the extension would stall construction and harm consumer interests.

Under Section 7(3) of RERA, MahaRERA has allowed the extension subject to strict conditions, including:

Palais Royale, originally launched by Shreeram Urban Infrastructure Ltd in 2008, was stalled due to litigation over alleged building violations. The Supreme Court cleared the project in 2019. Financial defaults led to its auction, with Pune-based Honest Shelters acquiring it for Rs 7.05 billion.

The 76-storey tower features 162 apartments, of which 77 are booked. Units range from 4,000–8,000 sq ft with average prices of Rs 500 million. Once rated Mumbai’s tallest building at 300 m, it has since been overtaken by Lokhandwala Minerva at 300.6 m.

News source: Hindustan Times