Bombay HC declares builder’s arrest in housing fraud case ‘illegal’, orders his release

Lalit Tekchandani was arrested on January 30 after a cheating case was lodged against him.

The Bombay High Court last week held that city builder Lalit Tekchandani’s arrest in a housing fraud case was “illegal” and “invalid” and ordered his release. The court observed that since the grounds of arrest were not communicated to the petitioner, the same violated his fundamental rights.

A bench of Justices Bharati H Dangre and Manjusha A Deshpande passed the verdict in three writ pleas by Tekchandani, the director of Supreme Constructions, alleging illegal arrest in three FIRs. A copy of the verdict was made available on Thursday night.

The Chembur police had first registered a cheating FIR against Tekchandani on January 15 on a complaint made by a homebuyer under provisions of the Indian Penal Code, the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act and the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act. Tekchandani was arrested on January 30 this year.

Another FIR against Tekchandani was lodged at Taloja police station on January 15 this year and he was shown to be arrested on February 21.

The third FIR was lodged on February 12 at CBD Belapur police station in Navi Mumbai and Tekchandani was shown to be arrested on April 12.

Representing Tekchandani, advocates Taraq Sayed, Mayur Shikhare, Ashwini Achari, Anish Pereira and Alisha Parekh argued that grounds of arrest were not informed to him in writing in case of all three FIRs and same was in gross violation of the mandate under Articles 22 (1) (No person shall be detained in custody without being informed grounds of the arrest) and 21 (fundamental right to life and liberty) of the Constitution.

When the bench asked Public Prosecutor Hiten Venegaonkar if the grounds of arrest were communicated to the petitioner when he was arrested in the Taloja FIR, he submitted that the transfer warrant had indicated reasons, which the bench did not accept. The bench observed that a similar procedure was adopted with regard to the CBD Belapur FIR.

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The high court noted that communication of grounds of arrest is intended to enable an accused to know what material is in the hand of the investigating officer to justify his arrest, among other aspects. “On failure to do so, since the ‘grounds of arrest’ are not communicated to the petitioner despite his arrest through arrest/court surrender form, is liable to be declared as illegal and even the subsequent remand orders are also declared as null and void,” the bench held and ordered his release.

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