Supreme Court upholds e-auction of India’s tallest tower Palais Royale, paves way for completion
Palais Royale, India’s tallest and one of the most expensive luxury towers that has been stuck in limbo for more than a decade, will finally see the light of the day following a Supreme Court order upholding the public e-auction by a secured lender to sell it.
The judgement allows for the skyscraper’s completion and the subsequent handover of the Rs 15,000-crore project and its luxury apartments, each spread over more than 8,000 sq ft and priced Rs 65-70 crore.
The project, started in 2007 and touted to be the most ambitious real estate project in the country, has faced numerous challenges over the last 10 years. Legal disputes and hurdles had cast a shadow over the 320-meter-high, 88-storey, tower, delaying its progress and raising concerns among investors and stakeholders.
In 2010, the developer, Shree Ram Urban Infrastructure Ltd, availed of a Rs 900 crore loan from Indiabulls Housing Finance with this project as collateral. The erstwhile promoter of Shree Ram Urban also stood as personal guarantor to the loan.
The project was pulled up by authorities for violations of building codes and permissions. The then promoter, Shree Ram Urban Infrastructure, had not made the alterations to conform to the civic authority’s guidelines and the authority went on to withhold permissions. This led to project delay, leaving many homebuyers in the lurch.
Following a default by Shreeram Urban and its erstwhile promoter, Indiabulls Housing initiated recovery proceedings under the Securitisation & Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act and following a Bombay High Court order, the project was sold through a public e-auction in June 2019.
The successful bidder, Honest
