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In a significant legal development, the Madras High Court, recently dismissed a series of pleas brought forth by Neomax and its subsidiary companies. These pleas had sought the appointment of a commission, headed by a retired High Court judge, to oversee the resolution of land-related issues for depositors.
Justice G. Ilangovan was the presiding judge in this case and ruled against the petitions. The petitioners included Neomax Properties Pvt Ltd and its affiliated entities, which are Garlando Properties Pvt Ltd, Transco Properties Pvt Ltd, Tridas Properties Pvt Ltd, and Glowmax Properties Pvt Ltd.
The legal dispute had its roots in a case registered by the Madurai Economic Offences Wing (EOW) police back in June. The police alleged that these companies engaged in fraudulent activities that caused financial losses to depositors. Investors had advanced funds for land purchases and received booking confirmation receipts as proof of their investments. The completion of the sale hinged on the payment of the entire consideration, at which point the sale deed would be executed in favour of the depositors.
The petitioners argued that the Neomax Group had executed sale deeds for approximately 1.95 crore square feet of residential and commercial plots, benefitting around 15,000 customers. Notably, the Neomax Group had a substantial 4.12 crore square feet of residential and commercial plots approved by the District Industries Centre (DICP).
In response to the allegations, the Neomax group expressed its willingness to resolve land-related disputes with depositors, prompting the submission of these petitions. However, the Madras High Court has ruled against these pleas, marking an important development in this ongoing legal saga.
The court's decision underscores the significance of this case, as it pertains to financial losses incurred by depositors and the legitimacy of land transactions conducted by Neomax and its subsidiary companies. The next steps in this legal battle remain uncertain, but this ruling marks a critical turning point in the effort to address the grievances of those who have invested in land through these entities.
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