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The Mumbai City police's Economic Offences Wing (EOW) has officially closed a case against the directors of Nirmal Lifestyle, Dharmesh Jain and Rajiv Jain, along with other individuals, including Videocon group founder Venugopal Dhoot. The case, which dates back to 2012, involved allegations of cheating 28 home buyers out of nearly Rs 12.7 crore.
In a significant turn of events, the police have filed a C-summary report, indicating that the case was initially registered due to a "mistake of facts," and it has been determined that the offense was more of a civil nature than a criminal one.
This outcome follows a detailed investigation, which included statements from 29 witnesses, including the complainant. It has come to light that the developer, Nirmal Lifestyle, had indeed refunded the amounts invested by these homebuyers for their respective flats. Moreover, a compromise was reached between the complainant and the other investors, who collectively determined the amount of their investment and received interest on their investments. They also filed consent terms as part of the resolution process. Consequently, the allegations against the accused have now been settled and no longer hold any merit.
The backdrop to this case involves the EOW registering two separate FIRs in 2022. Homebuyers from various Nirmal Lifestyle projects, including Olympia, Panorama, Spirit, and Amethyst, had filed complaints with the EOW. The police conducted a comprehensive preliminary probe before eventually arresting the Jains.
Nirmal Lifestyle group had been grappling with financial constraints for some time, leading to the halt of several housing projects in Mulund and Kalyan.
In the case at hand, the police had initially booked the Jains, Chandrakant Shah (director of Modella Textile owned by Videocon group), Dhoot, and one Suresh Hegde under Indian Penal Code sections for cheating and forgery, as well as under the Maharashtra Ownership of Flat Act (MOFA). This was in connection with the Sports City project in the Mulund-Thane circle.
The police have submitted the closure report in response to a complaint lodged by Atish Mule in 2012. Mule had alleged that, under the pretext of developing the Sports City in Mulund-Thane, the developer had accepted 20% of the amount for a flat without obtaining the necessary permissions and then failed to execute a registered sale agreement within the prescribed period, ultimately not handing over possession of the property. Furthermore, the complaint stated that the developer transferred the project to Godrej Properties without informing the flat buyers or seeking their consent. However, it has now been established that all complainants have given statements to the EOW confirming that the developers have reimbursed them, along with interest.
Notably, in May of this year, the EOW had arrested Dharmesh Jain and Rajiv Jain in another housing fraud case. In this instance, 54 homebuyers had filed police complaints, alleging that the developer had accepted money from them in 2010-11 for flats in a Mulund (West) project but failed to deliver on their promises.
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