Royal Realtors Partner Convicted for Defrauding Flat Purchasers of ₹10.95 Cr

Royal Realtors Partner Convicted for Defrauding Flat Purchasers of ₹10.95 Cr

The complaint against the partners of Royal Realtors was filed by one of the flat purchasers in 2021 with the Agripada police station.

Charul Shah JoshiUpdated: Monday, November 13, 2023, 08:38 PM IST
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Royal Realtors Partner Convicted for Defrauding Flat Purchasers of ₹10.95 Cr | Representative pic

Mumbai: The Metropolitan Magistrate at Mazgaon has convicted a partner of Royal Realtors, a company engaged in building redevelopment and construction. Despite receiving approximately 10 crore from various flat purchasers, the builder failed to deliver the promised flats or return the money. Instead, the builder allotted the same flats to old tenants.

The complaint against the partners of Royal Realtors was filed by Ferhan Roshan, one of the flat purchasers, in 2021 with the Agripada police station.

The case

Roshan alleged that in 2012, he and his mother sought to purchase a flat. During the redevelopment of a building named Al Fateh by Roy Realtors, they approached one of the partners, Rizwan Dadan. Dadan agreed to sell flat number 1001 to the complainant for Rs 57.95 lakhs. The complainant claimed to have paid him the required money over time.

In October 2016, Dadan issued an allotment letter for the flat, and in the same month, an agreement was executed, with the complainant paying the stamp duty. However, despite paying all charges, the complainant asserted that the flat was not allotted to them.

In December 2019, the complainant discovered that flat No. 1001 had been sold to an old tenant, Jamal Ahmad Haji Mohd. Amin Ansari, by Sayyed Pervez on behalf of M/s. Al Fateh Tenant Association, based on a power of attorney executed by accused Rizwan for transferring the flats in the building to old tenants. Despite receiving a total of Rs. 57,02,000 and executing an agreement for the sale of flat No. 1001, the accused did not hand over possession to the informant and instead gave possession to the old tenant.

The complainant alleged that Rizwan and another partner, Rehan, cheated other flat purchasers, including the informant and her mother, by receiving a total amount of Rs. 10.38 crores from them. The accused were accused of cheating the informant, witnesses, and other flat purchasers for a total amount of Rs. 10.95 crores, misappropriating the funds for their own use.

The flat purchaser filed a written complaint in June 2020, and a case was registered in August 2020. Other flat purchasers were examined as witnesses alongside Roshan. While Rizwan was prosecuted, Rehan remained an absconder. Rizwan, in his defense, claimed false implication and stated that the power of attorney for the allotment of flats to old tenants was executed after his arrest.

The court held that, after accepting the entire payment of the sale price, the accused executed agreements for sale and MOUs but failed to complete the construction of the Royal Touch building within the agreed period. The accused did not hand over possession of the flats to the informant and other flat purchaser witnesses. The court stated that the prosecution proved that the accused received a substantial amount of Rs. 10.95 crore from the informant and flat purchaser witnesses through deception and misappropriated it for personal use.

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