DNA EXCLUSIVE: Indiabulls to re-auction Palais Royale, slashes reserve price by Rs 78 crore

Once billed as Mumbai's most ultra-luxurious residential address, which is now mired in controversy, Palais Royale at Lower Parel will again be put on the block.

After failing to attract any bidders in its first attempt with a reserve price of Rs 746 crore, lender Indiabulls Housing Finance Limited has brought down the starting price to Rs 667.92 crore. The auction will be held on June 24.

Through this auction, Indiabulls is trying to recover a part of the nearly Rs 915 crore it had lent to developer Shree Ram Urban Infrastructure Limited which ran into financial troubles and abandoned construction after raising nearly 70 floors and 162 flats.

Indiabulls has sent out a notice for e-auction of the entire property barring 142 flats that have already been sold. At the time of its launch in 2008, the developer had claimed that apartments at Palais Royale will have areas from 4,000 square feet to 8,000 square feet. Each of the flats sold so far cost anything between Rs 30 crore and Rs 50 crore. The building has come up on a 7-acre plot at the erstwhile Shree Ram Mills compound.

The earnest money – the initial deposit – has been kept at Rs 66.79 crore. As per the notice, the successful bidder will have to deposit 25 per cent of the sale price within two days of being selected. The remaining money is to be paid in 15 days from the date of acceptance of the tender or as may be agreed upon between the bidder and Indiabulls.

Palais Royale apart, Indiabulls will also hold e-auction for flat Nos. 21 and 65 in the same building on which the developer had availed loans. The reserve price for the two apartments too have been slashed – Rs 10.73 crore and Rs 22.35 crore flat Nos. 21 and 65 respectively. Over and above this, SRUIL owes Indiabulls Rs 1.66 crore in the form of uncleared tax deducted at source.

The skyscraper has been in the news for all the wrong reasons for quite some time. According to a DNA report of January 2018, upset homebuyers wanted to move court to know when they will get possession of the flats.