Mumbai Court Frames Charges Against Builder in Rs 28-Crore Flat Fraud Case

A special MPID court here on Monday framed charges against developer Vijay Machhindar, his wife and their company Ornate Spaces Pvt Ltd in an alleged Rs 28-crore fraud involving homebuyers and investors in a residential project in Oshiwara.

The accused will face trial under various provisions of the Indian Penal Code (IPC), the Maharashtra Protection of Interest of Depositors in Financial Establishments (MPID) Act and the Maharashtra Ownership Flats Act (MOFA).

According to the charge-framing order, the accused, who were directors of Ornate Spaces, allegedly collected around Rs 28 crore from prospective flat buyers and investors since 2012, promising possession of flats in the company's 'Grove Tower' project in Oshiwara by 2017-18.

However, the prosecution alleged that the accused neither handed over the flats nor returned the principal amounts collected from the buyers and investors. The court framed charges under IPC Sections 420 (cheating and dishonestly inducing delivery of property), 406 (criminal breach of trust), 409 (criminal breach of trust by a public servant, banker, merchant or agent), read with Section 34 (common intention).

The couple has also been charged with allegedly forging a general body meeting resolution on the letterhead of the housing society to fraudulently secure a loan from PNB Housing Finance Ltd.

Under Section 13 of MOFA, the accused face charges related to allegedly failing to execute and register agreements for sale, withholding disclosures concerning the project's title and sanctioned plans, and misusing advance deposits collected from purchasers.

They also face charges under Sections 3 and 4 of the MPID Act for allegedly committing fraudulent default against flat purchasers through assurances of assured returns, timely possession and financial security.

The case stems from an investigation by the Mumbai Police's Economic Offences Wing (EOW) following an FIR registered at Oshiwara police station in 2021. The charges were read over and explained to the accused in court, paving the way for the trial to commence. The allegations are yet to be tested during the trial.