The Enforcement Directorate (ED) on Wednesday carried out raids at five locations linked to Mumbai businessman Mansukhlal Gala, his chartered accountant (CA) Dinesh Shah and others in connection with an alleged Rs 133 crore cheating and forgery case.
The ED raided Gala's saree showroom Bharat Kalakshetra at Dadasaheb Phalke Road, Dadar (East) and also four of his flats in Trishla apartment situated near the showroom.
Allegations of fraud
The Bhoiwada police had registered a case in August 2019 against Gala and his CA for allegedly defrauding Parel-based developer Arvind Jayantilal Shah of SB Developers to the tune of Rs 113 crore. The case was later transferred to the Economic Offences Wing (EOW).
In 2019, Arvind Shah had approached the Mumbai police after his partner, Gala, allegedly reduced his family's share in the company from 50 per cent to 25 per cent causing a loss of Rs 113 crore. This company was involved in redeveloping at least five buildings in Parel and Chembur.
Gala, aided by a chartered accountant, allegedly forged documents to diminish Arvind Shah's family's 25 per cent stake in the company.
What does the complaint say?
According to the complaint, Arvind Shah resided at the Abdullah Building, Parel (East). A trustee Mohammad Salim Machiswala granted ownership rights of the building to Arvind Shah through a Power of Attorney in 2006.
Arvind Shah formed a company named SB Developer for the redevelopment. However, on the third floor, there were closed Tamil medium school premises owned by the BMC. To cancel the lease of these premises, the BMC required a payment of Rs 67 lakh.
It was at this stage that Gala entered the picture. He was inducted as a 50% partner of the firm which was later converted into a private limited company called SB Abodes with Dinesh Shah as the CA.
Gala allegedly conspired with Dinesh Shah, creating numerous forged and bogus consent letters and documents related to the shares of Shah's family. Subsequently, these false documents were sent to the Registrar of Companies office for record-keeping.
