The 72-storey STG Star Living project in Thane has been stalled since April 2023, with only 10 floors completed despite significant investor contributions. According to reports from Mumbai Mirror, nearly 45-50% of flat costs have been collected from buyers, yet the project remains incomplete. The tower was marketed as Thane's tallest residential development, featuring 51,000 sq ft clubhouse and over 40 sky-level amenities, with promotional material claiming the building will include a 360-degree infinity pool and offer panoramic city views from a height of 235 metres. Sources familiar with the matter told Mumbai Mirror that the crisis at the site has deepened significantly, with contractors allegedly abandoning the project over unpaid dues and the electricity supply to the construction site reportedly disconnected due to non-payment of bills.
A court-appointed resolution professional is now seeking ₹5,000 additional per square foot from buyers if construction is to resume. As reported by Mumbai Mirror, buyers have refused to accept this demand during recent meetings. One homebuyer stated that the additional escalation cost is not acceptable to homebuyers, with the group deciding not to agree to the demands during their Wednesday meeting. After the case was referred to NCLT, Monica Ramesh Shah, a Resolution Professional (RP), was appointed who is asking for this additional cost, which buyers have categorically rejected. Many homebuyers also alleged lapses in statutory compliance, claiming that quarterly and annual progress reports of the project have not been updated on the MahaRERA website since September 2021.
The Thane project's stalemate reflects a much larger crisis in India's affordable housing sector, which faces a ₹55,000 crore funding gap according to a recent Anarock Capital report. The report reveals that over 450,000 affordable and mid-range homes across more than 1,500 stalled projects require urgent funding support. Despite strong demand, homes priced below ₹40 lakh accounted for just 10% of new launches in Q1 2026, down from 26% in 2021, while homes priced above ₹1.5 crore made up 53% of launches during the quarter. India currently faces a shortage of 10 million affordable housing units and is estimated to require an additional 25 million units by 2030.
The project's financial burden has been devastating for many families who invested in the development. According to Mumbai Mirror, one 58-year-old advocate whose family invested in 2018 revealed they mortgaged existing property, sold jewellery, and used husband's provident fund savings to make payments to the builder. The buyer, who was promised possession by 2023, stated their dreams are shattered as more than 100 families are now stuck in the project. With the project stalled for nearly one-and-a-half years, many homebuyers said they had lost confidence in the developer's ability to complete the 72-storey tower within the deadline registered under MahaRERA. Homebuyers claimed they got to know about the builder's bankruptcy in August 2025 through media reports and are now left paying rent and housing loan EMIs. Some buyers also alleged possible diversion of funds to other projects and SRA obligations, with the developer claiming a major cash crunch after a private financier allegedly stopped loan disbursements over the past eight months.
The project, developed by Theme Developers Private Limited (formerly Spenta Nova), is registered under MahaRERA with a completion deadline of December 31, 2026. As reported by Mumbai Mirror, buyers allege that the project's MahaRERA progress reports have not been updated since September 15, 2021, and audited financial statements for FY 2022-23 were never submitted. A 72-year-old buyer who won a MahaRERA order in 2019 directing the developer to pay ₹5.3 crore with interest stated the Daulatani brothers have still not complied with the interest amount despite court proceedings. Responding to the allegations, Vinod Daulatani told Mumbai Mirror that the matter is pending before the NCLT and declined detailed comment.
