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MahaRERA issued an order directing Honest Shelters to hand over possession of six flats in the "Palais Royale" project at Worli to India Infoline Finance Limited (IIFL) and to pay interest for the delayed possession. The project had been acquired by Honest Shelters from Shree Ram Urban Infrastructure in 2019. IIFL had acquired the flats from the original purchasers and moved forward with complaints regarding non-fulfillment of possession agreements. MahaRERA concluded that the promoter had failed to prove any default by the original allottees, and ordered the transfer of possession along with an occupancy certificate.
Earlier this week, MahaRERA issued an order directing Honest Shelters to transfer possession of six flats in the "Palais Royale" project at Worli to India Infoline Finance Limited (IIFL). The regulator also instructed the promoter to pay interest for the delayed possession of these flats. MahaRERA Chairman Manoj Saunik stated that the official liquidator should hand over possession of the flats in his custody to the promoter to complete the construction. After that, the promoter was to provide the flats, along with an occupancy certificate, to IIFL. Advertisement
Honest Shelters had acquired the Palais Royale project from Shree Ram Urban Infrastructure after an auction by Indiabulls Housing Finance in 2019. The flats in question were purchased by IIFL from the original flat owners, who had failed to meet the conditions of their mortgage agreements. Afterward, Honest Shelters sent a demand cum termination notice to IIFL, requesting payment of outstanding dues, including transfer fees.
While Honest Shelters moved MahaRERA for a directive to execute a cancellation deed concerning the flats, IIFL filed complaints against the promoter, seeking possession of the flats with interest due to the delay. Honest Shelters argued that simply repeating the clauses of the deed of assignment did not grant IIFL the rights over the flats. The promoter also mentioned that despite multiple reminders, IIFL had not provided necessary payment receipts and documentation. The deed of transfer cum assignment was executed before Honest Shelters took over the project from Shree Ram Urban Infrastructure Limited (SRUIL).
On the other hand, IIFL argued that the flats were not part of the SARFAESI Act auction and that the original owners had agreed to transfer their rights to IIFL, making them the rightful allottees. IIFL further stated that the promoter had not handed over the flats as per the sale agreement.
MahaRERA found that the previous allottees had made full payments for their flats in line with the agreements. It also ruled that IIFL was the legitimate allottee of the flats and that the promoter had failed to prove any default on the part of the allottees. The termination notices issued by Honest Shelters were considered invalid, and the regulator concluded that the promoter failed to provide the flats with an occupancy certificate by the date specified in the agreements.
The MahaRERA order earlier this week ensures that IIFL will receive possession of the flats in the "Palais Royale" project at Worli, along with an occupancy certificate, following a delay in possession. The case highlighted a conflict over rights, payments, and contractual obligations, with IIFL ultimately being recognized as the rightful allottee. Honest Shelters' termination notices were deemed invalid, emphasizing the importance of fulfilling contractual commitments and legal procedures in property transactions.
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