In a small but significant step forward for one of India's most infamous delayed real estate projects, the developer of Mumbai's Palais Royale has resolved a legal dispute with a creditor. However, this move does little to mask the persistent and prolonged delays that continue to plague the ambitious skyscraper, originally slated to become the country's tallest residential tower.
NCLT Settlement Provides Temporary Relief
Honest Shelters Pvt. Ltd., the current developer of the Palais Royale project in Mumbai's upscale Worli locality, has reached a settlement with an operational creditor. The creditor, Interscape, a Mumbai-based architecture and interior decoration firm, had approached the Mumbai bench of the National Company Law Tribunal (NCLT) to recover unpaid dues.
According to an NCLT order dated 27 October, reviewed by Mint, Honest Shelters agreed to pay Interscape ₹4.8 crore against total dues of ₹5.21 crore. The developer had previously paid ₹1.05 crore before the settlement. The remaining amount is to be cleared in instalments, with a final deadline of 31 December.
During the court proceedings, Saloni Sulakhe, representing Honest Shelters from the law firm Dhaval Vussonji & Associates, handed over cheques worth ₹3.75 crore to Interscape's counsel. This settlement removes one of the several legal obstacles that have haunted the project for over 15 years.
A Legacy of Delays and Ownership Changes
The saga of Palais Royale is a long and convoluted one. The project, located in Worli, first received regulatory approval for construction back in 2005. It was initially developed by Shree Ram Urban Infrastructure Ltd (SRUIL), which eventually exited after falling into bankruptcy due to years of stalled construction.
Honest Shelters entered the picture in 2019, acquiring the project for ₹705 crore at an auction conducted by Indiabulls Housing Finance. Since taking over, Honest Shelters has extended the project's completion deadline three times. The most recent target was December 2024, a deadline that has now passed with the project still visibly incomplete. Cranes remain perched atop the structure, a constant reminder of the delays for Mumbai's residents.
Compounding the problems, the project's registration with the Maharashtra Real Estate Regulatory Authority (MahaRERA) has officially lapsed, as confirmed by the regulator's website. Repeated attempts by Mint to contact Honest Shelters and their lawyer Saloni Sulakhe for comment went unanswered.
Ultra-Luxury Buyers Remain Unfazed
Despite the cloud of uncertainty and regulatory lapses, the Palais Royale continues to attract buyers from the very pinnacle of the luxury market. This demand underscores a unique segment of real estate where conventional rules of investment seem not to apply.
In a landmark deal in December 2024, the promoters of Metro Brands Ltd. purchased five apartments on the 61st and 62nd floors for a staggering combined sum of ₹405 crore. This transaction was recorded as the most expensive home purchase of that year, according to data from property platform Zapkey. More recently, in August 2025, two more apartments in the building were sold for between ₹50 crore and ₹52 crore.
The project's enduring appeal lies in its unprecedented scale and scarcity of such vast living spaces in Mumbai. As per MahaRERA data, most apartments at Palais Royale offer a carpet area of either 4,755 sq. ft. or 6,522 sq. ft., with the largest unit spanning an enormous 37,243 sq. ft.. This stands in stark contrast to the Mumbai average, where nearly half of all new homes sold in 2024 were under 650 sq. ft.
Real estate analyst Pankaj Kapoor, Managing Director of Liases Foras, suggests that the advanced stage of construction and the project's exclusivity are key drivers for these high-value sales. "The construction of the building has reached an advanced stage so people may be taking comfort in that. It may not take 15 more years for the project to be completed, maybe one or two more years," he said. He added that the scarcity of such large apartments and the address's value as a status symbol continue to lure wealthy homebuyers.
While the resolution of the NCLT case is a positive development, the path to finally completing the Palais Royale remains fraught with challenges. The project serves as a high-profile case study in the complexities of Indian real estate, where even the most ambitious dreams can get tangled in years of legal and logistical hurdles.
