Mumbai: Court Rebukes Investigating Officer For Slow Probe In Cheating Case Involving Real Estate Developers

Mumbai: The Vikhroli Metropolitan Magistrate court has pulled up the investigating officer (IO) from the Tilak Nagar police station for a slow probe into a cheating complaint filed by Shreenathji Group against its partner firm Huges Real Estates Developers LLP for allegedly misappropriating proceeds of sales of a joint venture called Tilak Green View Co-operative Housing Society.

Rajesh Mehta, the promoter of Shreenathji Developers, had alleged that the joint venture project with other partners in Huges suffered losses to the tune of Rs10 crore owing to misappropriation of funds. He claimed that even after four months of probe by the investigating officer the accounts weren’t frozen. He then moved the Vikhroli court through his lawyers Kushal Mor and Marmik Shah.

After hearing the plea, the court noted, “Only after receiving a notice from this court, the investigation officer started the probe. Prior to that, in spite of serious allegations, the investigation wasn’t conducted in a proper manner. In fact, the officer is trained in economic offences, Yet, the investigation carried out by him appears to be not satisfactory.”

Noting that the officer does not appear to be serious, the court has asked the Deputy Commissioner of Police (Zone VI) to see if there is a need to replace him or depute another officer to assist him. The court has further asked the police to complete the investigation as soon as possible.

In January 2018, a year after the GST laws came into force, Mehta approached the accused to raise more finances to complete the project. It is claimed that the accused agreed on the condition that they would be allowed to raise funds their way and also complete the remaining project their way. Thereafter, a supplementary agreement was executed between the two groups.