Mumbai: Haryana bizman accuses 8 from city of Rs 127-crore fraud

The site where the borrowing firms claimed the redevelopment project would be built. Pic/Shadab Khan

The Haryana police have registered a case against eight individuals who served as directors, three real estate companies, and one chartered accountant for cheating a businessman of Rs 127 crore by offering a lucrative deal in a redevelopment project. According to the complaint, the accused, through their companies roped in the Haryana-based businessman to fund a redevelopment project in Worli and took Rs 30 crore in funds in 2019. The accused promised to repay the principal amount, compensation worth R97 crore, and ownership of the project if it is not completed by June 2021.

The case

Between May and June 2019, directors of Yash Enterprises, a partnership firm, Mehta Land Developers Pvt Ltd, and Samay Estate Pvt Ltd. reached out to Haryana-based businessman Pavel Garg regarding a redevelopment project measuring 5238.81 sqm and having 66 tenants/occupants at Worli Naka. They said they would need R100-R150 crore. Convinced with the project and the paperwork, Garg invested R20 crore on a short-term basis and assured to finance the project further if his confidence in it increases. The payment was made from Garg's company, Combitic Global Caplet Pvt Ltd, to Yash Enterprises in 2019. The debt was repaid with interest in the same year and the companies approached Garg again for Rs 30 crore. This amount was paid through Imperious Reality LLP.

During this time, the directors informed Garg that partners from Mehta Land Developers Pvt. Ltd. and Samay Estate Pvt. Ltd. will soon retire from the partnership, Yash Enterprises, without owing any rights and liabilities. On this pretext, the agreement between Imperious Reality LLP and Yash Enterprises was signed by its partners Paras Porwal and Ronie Porwal. According to the agreement, in case the project failed, Imperious Reality LLP was entitled to 50 per cent of the project/FSI, and a refund of Rs 30 crore with liquidated damages worth R97 crore, bringing the total payment to Rs 127 crore.

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Dispute rises

A dispute arose between the parties as the directors of Mehta Land Developers Pvt. Ltd. and Samay Estate Pvt. Ltd. did not retire from the partnership. To gain Garg's trust, Yash Enterprises put the consent terms of the agreement - with the promise to repay the principal amount, the compensation of R97 crore and part ownership of the project - on record in the Bombay High Court, thus securing Imperious Reality LLP.

When the redevelopment project never took off, Garg sent legal notices to Yash Enterprises. The directors of the borrowing firms sent 10 cheques of R12.7 crore each to Garg between October 2022 and May 2023 but all of them bounced. This prompted Garg to approach the police and an FIR was registered on September 5.

"We have filed an FIR against 12, including nine individuals and three companies. They have been booked for forgery and the misappropriation of property.

The complainant has claimed that many of the documents were forged and the funds he provided were put to personal use," said a Haryana police officer. Among the accused, Paras died by suicide at his Kalachowkie residence due to bankruptcy and another accused Vinod Seth died.

At the offices of Mehta Land Developers Pvt. Ltd. and Samay Estate Pvt. Ltd., a manager, Mahavir Jain, told mid-day he would inform the concerned persons and the office of the accused chartered accountant Prakash Bohra did not have any staff. A peon at the office said he would inform Bohra about the case.

Meanwhile, a Dadar building which was supposed to have the offices of Yash Enterprises, has been demolished and a new building has come up in its place.

The Porwal family were unavailable for comment. Inspector Karamjeet Singh, station house officer, Civil Line police, Sonipat, said, "We registered a complaint a few days ago. We will call all the accused for interrogation. If anyone is found guilty we will even proceed with arrests."

Sept 5
When the FIR was registered in the case