Court: Property buyers can't be added as accused in investment fraud case
Mumbai: A special MPID court recently ruled against adding as accused two persons who purchased a property for Rs 2.6 crore from two accused in an investment fraud case involving Cosmo Investment and Athena Investment.
Tired of too many ads? go ad free now
The court held that those whose involvement is not direct in managing the fraudulent financial establishments cannot be added as accused.
"Even if the submission that respondent numbers 10 and 11 (purchasers) acted as agents of respondent numbers 1-7 (accused), they cannot be added as accused. Respondent numbers 10 and 11 are not directors of the firms. They are not persons responsible for the business or management of the business.
The role of respondent numbers 10 and 11 is only that they paid Rs 2.60 crore out of the consideration amount to 34 investors on the instruction of respondent numbers 1 and 3.
Thus, even if they are considered as agents, they cannot be added as accused," Judge N G Shukla said.
The plea was filed by one of the investors, Arvind Solanki (67), against the existing accused in the fraud case—Juhu residents Amit Masalia, Prakash Masalia, Dina Masalia, Payal Masalia and Mayank Doshi, Cosmo Investment and Athena Investment, as well as the property purchasers Jitendra Shah and Kirti Shah.
Solanki claimed the transaction was fraudulent. Amit, Prakash, Dina, Payal and Doshi were involved in the two firms.
They are accused of defrauding 42 investors by failing to return substantial investments along with promised lumpsum benefits and interest. The victims invested around Rs 22.37 crore. A case under the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act was filed in 2018.
Tired of too many ads? go ad free now
Names of 15 depositors and their investments were revealed after the chargesheet was filed.
During their anticipatory bail proceedings, the accused returned the invested amount to the original complainant and her relatives, leading to the grant of their bail. At that time, a property previously attached by the investigating officer was also released. This property is an office space in Andheri West. Shortly after, Amit and Prakash sold it for Rs 2.75 crore.
After an initial payment of Rs 15 lakh, the remaining Rs 2.6 crore was paid directly to 34 investors, victims of the fraud.
The advocate representing Solanki argued this property sale was a "mala fide transfer" aimed at circumventing asset attachment under the Act. It was contended the Shahs acted as agents for the original accused and committed fraud by selectively repaying certain investors, some of whom were not named in the original chargesheet. However, advocates representing the Shahs argued they legitimately purchased the property and fulfilled their payment obligations by settling debts with investors as instructed by original sellers.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
43 minutes ago
- Time of India
Police intercept mini trucks carrying suspicious powder from pharmaceutical company in Chhatrapati Sambhajinagar
Chhatrapati Sambhajinagar: The anti-narcotics squad of Chhatrapati Sambhajinagar city police intercepted two mini trucks on Saturday carrying suspicious powder concealed within plastic scrap obtained from a pharmaceutical company by a scrap vendor. Police commissioner Pravin Pawar said, "The presence of white powder and small granule-like substances randomly placed in carry bags and stashed in plastic drums has heightened suspicions." Police officers said that no chemical, in any form, can leave the pharmaceutical company without prior clearance from the appropriate channels. Police authorities reported that the intercepted vehicles had left a global generic and speciality pharmaceutical company's manufacturing unit in the MIDC Waluj area. Anti-narcotics squad inspector Geeta Bagwade stated, "There were indications of smuggling and transporting suspicious drug-like substances from a pharmaceutical company located in the MIDC Waluj area. Accordingly, our teams set up a trap and seized the two mini trucks." The officer said the driver failed to provide details or satisfactory answers regarding the powder. Police sources said, given the case's gravity, forensic teams have been requested to expedite testing and analysis to determine the composition of the seized white powder. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Ask A Pro: "I'm 70 with $1.4M in IRAs. Should I convert $120K/Year to a Roth?" SmartAsset Undo In Oct 2023, the MIDC Waluj industrial area made headlines after Directorate of Revenue Intelligence (DRI) teams from Gujarat, Mumbai, and Pune, assisted by the Ahmedabad crime branch, raided an industrial unit and seized narcotics valued at Rs 250 crore.
Time of India
43 minutes ago
- Time of India
Crusher co fined 16cr for illegal murrum mining
Indore: In a significant crackdown on illegal mining activities, Indore district administration on Saturday imposed a hefty fine exceeding Rs 16.64 crore on Yogesh Patidar, a partner in M/s Balaji Stone Crusher and Earth Movers. The penalty was levied after the company was found to be engaged in unauthorised excavation of murrum (gravel) in Dr Ambedkar Nagar (Mhow) tehsil area. According to the order passed by Indore ADM's court, it was established that the respondent, Yogesh s/o Ramgopal Patidar, illegally excavated murrum from Ambachandan village. This excavation occurred despite the approved mining lease being specifically for stone (gravel) and not murrum. Furthermore, the investigation revealed that the mining operations were conducted without valid authorisation and without the necessary transit passes for mineral transportation, as mandated by the approved orders and rules. It was also found that M/s Balaji Stone Crusher and Earth Movers, through its partner Yogesh Patidar, failed to obtain the required environmental clearance from either the District Level Environment Impact Assessment Authority (DEIAA) or the State Level Environment Impact Assessment Authority (SEIAA), Madhya Pradesh, Bhopal, before commencing mining activities.
Time of India
43 minutes ago
- Time of India
Fly ash brick prices up due to raw material costs
Indore: A significant increase in raw material costs led to a price hike of 0.50 paise per piece in fly ash bricks across Indore, lifting the overall building costs for homeowners and construction companies. The surge primarily stems from the rising costs of stone crusher dust and other essential materials used in the manufacturing process. The revised cost of fly ash bricks in Indore is Rs 6.50 per piece. Now the cost of a small truckload carrying 2,000 flyash bricks will be dearer by Rs 1,000. Vijay Gandhi, a builder and member of Confederation of Real Estate Developers' Associations of India (CREDAI), Indore said, "Any jump in the input cost directly impacts the building cost. In Indore fly ash is used in around 30-40 per cent projects and red bricks are used widely in Indore due to its easy availability." The robust manufacturing base has established Indore as a significant hub for fly ash brick production in the region. According to industry data, Indore's fly ash brick manufacturing units produce approximately 20 lakh pieces daily. The majority of this production serves the local market, with most supplies being consumed within the city and a 20-kilometre radius. Abhishek Purohit, vice president, Fly Ash Brick Manufacturers Cooperative Society Ltd, said, "The association members unanimously decided in a meeting that due to the rising costs of gravel and stone crusher dust used in the production of fly ash bricks, the price per brick will be increased by 0.50 paise. These revised rates will be implemented immediately." The city hosts over 200 fly ash brick manufacturers, forming a substantial industrial segment. These units collectively require around 6,000 tonnes of fly ash per day to maintain their production levels. Industry experts suggest that this price increase could impact ongoing and planned construction projects in the area. Small-scale builders and individual homeowners might need to revise their budgets to accommodate these higher material costs. "Local manufacturers are working to maintain steady production levels while managing increased operational costs, but this has resulted in squeezed margins. Fly ash bricks offer an eco-friendly alternative to traditional clay bricks, and despite the price increase, these bricks remain an essential building material," said Gaurav Mohta, president, of the association. Fly ash manufacturers highlighted challenges related to logistics and timely transportation of fly ash to end-users.
