Mumbai, Feb 19: The Mumbai police have registered a criminal case against Haresh Navnitlal Mehta, 67, director of M/s Esque Finmark Private Limited, along with other related accused, for allegedly cheating investors of Rs 8 crore in a real estate project. The Economic Offences Wing (EOW) is conducting further investigation.
Investment through group model
According to the FIR, the complainant, Mohanlal Genmal Rajawat, 71, a resident of Parel Tank Road, Ambewadi, Kalachowki, has been engaged in investing in real estate projects through a group model since 2003.
He formed the MR Group, pooling funds from relatives, friends and acquaintances to invest in real estate ventures, with profits from flat sales to be distributed proportionately among members.
Rajawat’s acquaintance, Paras Porwal, owner of M/s Esque Finmark Pvt Ltd, was developing the Shanti Darshan project at Survey No. 124, Ambewadi, Kalachowki. In 2003, Rajawat formed the MR Group and invested in 20 flats admeasuring 23,595 square feet along with 21 parking spaces in the project.
Rs 8 crore invested between 2003 and 2007
Between 2003 and 2007, the MR Group allegedly invested a total of Rs 8,00,90,000 — Rs 80.90 lakh through cheques drawn from Bank of India, Corporation Bank and Bank of Maharashtra, and Rs 7.20 crore in cash. Porwal allegedly issued receipts acknowledging the payments and provided allotment letters for 20 flats in the Shanti Darshan project.
On February 10, 2005, Esque Finmark issued a letter stating that 14 flats along with 14 podium parking spaces had been reserved in the name of MR Group after receiving full payment.
The company allegedly assured that the project would be completed and possession handed over by 2006. Receipts were also issued for other payments made in cash and by cheque.
Additionally, Rajawat’s relatives, Vandana Bharatkumar, Meena Praveenkumar and Walchandji Jain also invested funds in the project and were issued receipts on the company’s letterhead, the FIR states.
Project stalled, shares transferred
However, after construction reached the 14th floor in 2006, the project reportedly stalled midway. In 2010, Paras Porwal allegedly transferred 17,20,500 shares of Esque Finmark Pvt Ltd, along with the Shanti Darshan project and its liabilities, to builder Harish Mehta of Rohan Developers Private Limited.
Rajawat later contacted Harish Mehta regarding the group’s investment. In October 2010, Mehta allegedly issued fresh allotment letters for some flats under his own signature. However, Rajawat later discovered that the newly allotted flats were situated on slum land. When Rajawat attempted to confront Mehta, the latter allegedly avoided meetings.
Alleged demolition and transfer of land
The FIR further alleges that in 2010, Mehta demolished the partially constructed 14-storey building of Shanti Darshan at Ambewadi, G.D. Ambekar Road, Kalachowki, and transferred the land along with FSI to M/s Corona Realty Private Limited for wrongful gain.
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Police have alleged that instead of handing over the originally allotted flats, the accused issued allotment letters for flats on slum land, thereby cheating the investors. The current ready reckoner value of the flats is estimated at Rs 64.37 crore.
A case has been registered at the Kalachowki police station under relevant sections of the Indian Penal Code. Further investigation is underway.
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