A city court has directed the Gurgaon Police to register an FIR against PVR Limited in connection with allegations made by Elan Buildcon Limited, which claimed that the group signed an MoU with it — only to terminate the same “on vague and baseless reasons” without any “justifiable explanation”.
Elan claimed it entered into the MoU on May 6, 2016, wherein it agreed to lease a multiplex space, measuring 50,000 square feet to PVR Ltd, proceeding to begin construction on the site. The concerned sanction plans were obtained by the company, and a large amount was invested to deliver the project. However, PVR Limited terminated the MoU on September 20, 2017, Elan Buildcon Ltd alleged.
During arguments in court, the counsel for Elan Buildcon Ltd alleged that the MoU had been signed to only gain profits at the cost of the complainant, stating that the aim was to “allure investors” so as to increase the share value of the company.
The court, in its order, declared that “the reasons cited in the MoU prima facie do not seem to be convincing enough and are in fact contrary to the terms and condition of MoU. Without proper investigation it would not be correct to decline the prayer of the complainant for police investigation.” “Concerned SHO is directed to register the FIR under relevant sections and to investigate from all angles,” it said.
PVR said the claims made by the complainant are “incorrect and baseless”. PVR Ltd stated that the company offered it a multiplex space in a project meant to be developed in the city but, it was later discovered, the group had “misrepresented facts” and the contract was hence terminated for “non-fulfillment by Elan”.