Bombay HC Upholds Rs.38.18 Crores Deposit Condition of REAT for RERA Interim Stay.
Judgment dated 5.11.2026 of the High Court of Bombay in Second Appeal No.534 of 2024 of Sachin Bajla Vs. Honest Shelters Pvt Ltd and another
Shree Ram Urban Infrastructure Limited (SRUIL) was earlier the owner of the land admeasuring about 13,376 sq.mt situated at Worli Estate, Lower Parel Division, Mumbai. SRUIL undertook construction of a building named, ‘Palais Royale’ on the said land. Appellant expressed interest in purchase of a flat in the building in Palais Royale and accordingly Letter of Allotment dated 20 January 2010 was issued by SRUIL in favour of the Appellant for sale of the flat on 46th NW level of the building Palais Royale (the flat) for total consideration of Rs.76,36,00,000/-. As per the Allotment Letter, Appellant was required to pay an amount of Rs. 38,18,00,000/- immediately upon issuance of allotment letter for execution and registration of Agreement for Sale and the balance amount was to be paid as per the agreed schedule. Between 23 January 2010 to 14 July 2011, the Appellant paid amount of Rs.5,51,00,000/- to SRUIL in several tranches.
In 2016-17, this Court directed winding up of SRUIL and Official Liquidator was appointed to take charge of assets of SRUIL. Indiabulls filed proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) against SRUIL and also filed Company Application in this Court for handing over physical possession of the mortgaged property. Accordingly, Indiabulls took over possession of the mortgaged property and conducted public auction thereof. Respondent No.1 emerged as a successful bidder and purchased and took over charge of the sale property and assumed the role of a promoter of the Project Palais Royale.
Section 13 RERA Act – MahaREAT – Conditional Order of Status Quo on deposit of Rs.38.18 crores.
The REAT while granting interim relief can impose a condition for depositing amount in excess of the limit prescribed under Section 13(1) of RERA for grant of interim relief.
The prohibition/restriction imposed on a promoter in accepting a sum in excess of 10% of cost of flat as advance payment or application fee has no application to the wide and discretionary powers of the REAT to pass such interim order as if deems fit and to impose any condition as is found necessary in the facts of the case. Section 13 (1) of RERA does not impose any fetter on the wide and discretionary powers of REAT to make interim order under Section 44(3) and Section 54 of RERA. A fortiori REAT can pass interim orders by imposing a condition for deposit of amount exceeding the limit of 10% of cost of a flat.
