Bombay HC grants interim stay on FIR against Kalpataru Developer

Bombay HC grants interim stay on FIR against Kalpataru Developer

Bombay HC grants interim stay on FIR against Kalpataru Developer

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Advocate Shirish Gupte argued that the complainants did not adhere to Supreme Court principles.

The Bombay High Court has granted an interim stay on the investigation into the FIR filed against the promoters of Kalpataru Developers. The FIR was filed allegedly for fraud in their Goregaon project. Senior Advocate Shirish Gupte, representing the promoters, contended that the complainant failed to follow principles established by the Supreme Court in several landmark judgments.

The interim stay order was issued by the Bombay High Court on June 28. It noted that the lower court had not adequately considered the complexity of the law when directing the lodging of the FIR. The court scheduled further hearings on July 12, 2024.

The FIR was filed by Mumbai Police on June 6. It implicated the promoters of Kiyana Ventures LLP, a group firm of Kalpataru Group, and developers Parag Munot, Mofatraj Munot, Anuj Munot, Ismail Kanga, project in-charge Devesh Bhatt, project director Narendra Lodha, and Omprakash Mehta. They were accused of defrauding homebuyers of approximately Rs 17 crore related to the Kalpataru Radiance housing project in Goregaon West. The complaint alleged that despite payments made by homebuyers, possession of flats had not been provided even after a decade.

The case specifically involves complainant Ishwarlal Vanjara, who, along with his wife, visited the project site in April 2013. He was assured by a representative that the project would be completed by 2017. Vanjara decided to buy a 2 BHK flat for Rs 2.20 crore and paid a booking amount in April 2014, eventually paying a total of Rs 2.09 crore through housing loans and his bank account. Despite a sale agreement being signed and registration formalities completed in July 2015, the developer allegedly failed to deliver the flat by the promised date of June 2017. Vanjara and five other flat buyers approached the Special Court designated under the MPID Act.

The court’s decision to stay the investigation underscores the need for a thorough legal examination of the allegations. The application of principles established by higher judicial precedents must also be examined.