No Chargesheet Filed Even After Four Years
Reckless Directors Roam Free; Investors Left in Lurch
Unmesh Gujarathi
Sprouts Exclusive
A massive scam orchestrated by a controversial real estate investment company with a head office in Bengaluru has been “managed” due to alleged collusion between senior officers of the Economic Offences Wing (EOW), competent authority officials, and the principal secretary of the government.
Despite seizing properties worth hundreds of crores, investors have yet to receive even a single rupee. Meanwhile, the company directors, out on bail, continue to move freely. Shockingly, the EOW has failed to file a charge sheet even four years after registering the case, the ‘Sprouts’ Special Investigation team has discovered.
The Scam
Bengaluru-based Expat Projects and Development Pvt. Ltd. acquired over 5000 acres of land across India. The company invited investors to put money into these properties but failed to deliver on its promises. Most investors, including over 400 from Maharashtra (Mumbai, Pune), Karnataka (Bengaluru), Goa, other states, and non-resident Indians (NRI’s), have received no returns on their investment and delivery of land. They lodged complaints with the police and submitted supporting documents. Some approached the EOW and Competent Authority also.
The FIR
An FIR being C, R, No. 221/2020 was registered against Expat Projects and Development Pvt Ltd. and 9 of its directors and executives with the Vinoba Bhave Police Station, Mumbai, on 7th October 2020. The said C.R. was transferred to EOW Unit -8 (Yellow Gate police station) on the same day, i.e., 7th October 2020, and was re-numbered as C.R. No. 31/2020. The FIR detailed that over 700 investors were defrauded of more than 7000 crores. The accused include Sachinandan Kanchan, Firoj David Ahmad Shaha, Santosh Balkrishna Shetty, Nenumal Bhatia, Arvind Gowda, Lansel Victor D’Souza, Parth D’Souza, Diwakar Mysore Ramamurthy, Rakesh Gaekwad/ Gaikwad, Raina Prasanna.
Charges under the Indian Penal Code (IPC) sections for criminal breach of trust (406, 409), cheating (420), criminal conspiracy (120B), and common intention (34) along with sections 3 and 4 of the Maharashtra Protection of Interest of Depositors (MPID) Act were filed.
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Four years of delay
Despite over four years since the FIR, the EOW has not filed a charge sheet, leaving investors, many of whom are senior citizens, outraged. Meanwhile, the accused remain free and have allegedly begun deceiving under new business names.
High Court’s Frustration
In the backdrop of the delay, an investor, through his advocate Sachin Mhatre, filed a criminal writ petition in the High Court. The petition seeks that all the land, including the 459 acres of land held by EOW and Competent Authority, should not be released but directly auctioned, and the amount realized should be paid to all the investors.
The High Court division bench, comprising Justices Revati Mohite-Dere and Prithviraj Chauhan, expressed anger over EOW’s and Competent Authority’s inefficiency and demanded action. The Court has asked EOW to file a charge sheet within 4 weeks from 17th December 2024 and set 28th January 2025 as the date for ensuring that the statement made by the Public Prosecutor of filing the charge sheet is complied.
The Modus Operandi
Expat Projects lured investors with promises of agricultural and non-agricultural plots via a monthly instalment scheme. They assured plot registration upon payment of 70% of the plot value, with the remaining 30% to be paid later. Investors were promised a plot handover and in case of delay, a refund with the market rate of interest plus 2% additional interest. Initially, the company honoured its commitments but later failed to deliver plots or refunds.
The FIR filed in 2020 revealed that the company had duped investors of Rs. 700 crores since 2013.
Investor Anguish
Investors allege that senior EOW official’s inaction has emboldened the accused. While the High Court intervention offers a glimmer of hope, the question remains whether justice will be served and the accused brought to account.
Unmesh Gujarathi
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