Re-auction: Indiabulls Housing cuts Palais Royale reserve price cut by Rs 78 cr

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Mumbai’s ultra-luxurious residential tower Palais Royale will be put up for auction again by Indiabulls, according to a report in DNA.

Lender Indiabulls Housing Finance Limited has slashed the starting price to Rs 667.9 crore after failing to attract bidders in its first attempt which had a reserve price of Rs 746 crore, the report suggests. The auction will be held on June 24. Moneycontrol could not independently verify the report.

Indiabulls is trying to recover a portion of the nearly Rs 915 crore that it had lent to Shree Ram Urban Infrastructure Limited -- the developer which ran into financial troubles and had abandoned construction after constructing around 70 floors and 162 flats.

The tower has come up on a seven-acre plot at what used to be Shree Ram Mills compound.

Indiabulls has sent out an e-auction notice for the property, except for the 142 flats that have been sold already. In 2008, when the project was launched, the developer had claimed that apartments at the tower will have areas ranging from 4,000 square feet to 8,000 square feet. Each flat sold so far cost between Rs 30 crore and Rs 50 crore.