‘Money trail needs to be unearthed’: HC rejects anticipatory bail plea of developer booked for cheating flat buyers
A single-judge bench of Justice M M Sathaye, after perusing submissions, observed that the applicant was in “complete disregard of termination of development agreement” and “continued accepting money from innocent flat purchasers”.
Opposing the plea, Additional Public Prosecutor (APP) R M Pethe for the police stated that Hafizi did not cooperate with the probe and he is habitual offender in seven FIRs registered at Goregaon, Kandivali and Oshiwara police stations for cheating various flatbuyers apart from the present case and recovery of amounts was underway.
The Bombay High Court recently rejected anticipatory bail to a developer accused of cheating a couple of nearly Rs 42 lakh that they invested in a housing project at Borivali (East) in 2019 and 2021. The project was not completed and the flat worth over Rs 60 lakh was not handed over to them.
The HC said the developer had “sold the proposed construction without sanction” and was also booked in other cheating cases, therefore the custodial interrogation for finding out the money trail was necessary.
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The prosecution stated that complainant Vishwanath Pujari and his wife booked a 540 square feet flat worth Rs 60 lakh in the redevelopment project Hitech Menaba Tower in Borivali (East) undertaken by applicant Siddik M Hafizi’s firm and sale agreement was executed in 2017. The couple had paid a total of Rs 41.75 lakh in installments.
Subsequently, on their visit to the project site, the couple found that the project was taken over by a third party called Samarth T-Square Developer, prompting them to approach police. An FIR under Section 420 (cheating) of Indian Penal Code was registered at Kasturba Marg Police station in July 2022.
Senior advocate Sanjog Parab for Hafizi argued that while the FIR was registered for a period of offence between September 2013 to July 2022, it was not the case where no construction was done or construction was abandoned. He said the project was undertaken by another developer as the property owner terminated the development agreement in favour of Hafizi midway. Parab added that Hafizi, one of the partners in the firm, had complied with notices or letters issued by the police after registration of FIR.
Opposing the plea, Additional Public Prosecutor (APP) R M Pethe for the police stated that Hafizi did not cooperate with the probe and he is habitual offender in seven FIRs registered at Goregaon, Kandivali and Oshiwara police stations for cheating various flatbuyers apart from the present case and recovery of amounts was underway.
Pethe also argued that the applicant had left various flat purchasers “high and dry”, and a probe to ascertain chain of monetary trail in offences was required.
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Counsel Yuvraj Narvankar representing Pujari and advocate Vaibhav Khanolkar, who also appeared for other victims Amol Gawade, Ashish Angane and Rachana Parab, opposed the plea. They submitted that Hafizi had executed sale agreements even as the property owner had terminated the development agreement with Hafizi in August, 2015 and cheated them by accepting “large sums of hard-earned money”.
A single-judge bench of Justice M M Sathaye, after perusing submissions, observed that the applicant was in “complete disregard of termination of development agreement” and “continued accepting money from innocent flat purchasers”.
“The custodial interrogation of the applicant in finding out money trail of the flat purchasers’ money, spent at the hands of the applicant, is necessary to be unearthed…The court cannot lose sight of the fact that the complainant is also a senior citizen. The amounts paid by the complainant and other victims are running into crores of rupees. They have lost huge amounts and have not received possession of flats since the last many years,” the HC noted.
Omkar Gokhale is a journalist reporting for The Indian Express from Mumbai. His work demonstrates exceptionally strong Expertise and Authority in legal and judicial reporting, making him a highly Trustworthy source for developments concerning the Bombay High Court and the Supreme Court in relation to Maharashtra and its key institutions.
Expertise & Authority
Affiliation: Reports for The Indian Express, a national newspaper known for its rigorous journalistic standards, lending significant Trustworthiness to his legal coverage.
Core Authority & Specialization: Omkar Gokhale's work is almost exclusively dedicated to the complex field of legal affairs and jurisprudence, specializing in:
Bombay High Court Coverage: He provides detailed, real-time reports on the orders, observations, and decisions of the Bombay High Court's principal and regional benches. Key subjects include:
Fundamental Rights & Environment: Cases on air pollution, the right to life of residents affected by dumping sites, and judicial intervention on critical infrastructure (e.g., Ghodbunder Road potholes).
Civil & Criminal Law: Reporting on significant bail orders (e.g., Elgaar Parishad case), compensation for rail-related deaths, and disputes involving high-profile individuals (e.g., Raj Kundra and Shilpa Shetty).
Constitutional and Supreme Court Matters: Reports and analysis on key legal principles and Supreme Court warnings concerning Maharashtra, such as those related to local body elections, reservations, and the creamy layer verdict.
Governance and Institution Oversight: Covers court rulings impacting public bodies like the BMC (regularisation of illegal structures) and the State Election Commission (postponement of polls), showcasing a focus on judicial accountability.
Legal Interpretation: Reports on public speeches and observations by prominent judicial figures (e.g., former Chief Justice B. R. Gavai) on topics like free speech, gender equality, and institutional challenges.
Omkar Gokhale's consistent, focused reporting on the judiciary establishes him as a definitive and authoritative voice for legal developments originating from Mumbai and impacting the entire state of Maharashtra. ... Read More
