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Ghaziabad police have registered an FIR against 18 executives from financial services company Indiabulls and real estate company M3M, following a complaint filed by the Shipra Group. Shipra alleges that these companies attempted to usurp its properties, including the flagship Shipra Mall in Indirapuram. The group claims that after signing a loan agreement with Indiabulls in December 2017, the latter fraudulently inflated the loan amount and demanded repayment using forged documents.
According to the complaint filed by Amit Walia of the Shipra Group, the company had signed an agreement with Indiabulls for a loan of Rs 1,939 crore at a lower-than-market interest rate to complete four residential and commercial projects in Noida and Ghaziabad. The agreement required Shipra to mortgage six of its properties, valued at Rs 6,000 crore, to Indiabulls. As a security measure, shares of some Shipra Group companies were also pledged to Indiabulls.
The complaint states that Indiabulls disbursed Rs 1,256 crore but took back Rs 389 crore as "pre-interest" and alleges the use of forged documents to inflate the loan amount to Rs 1,686 crore. Walia claims that in 2021, Indiabulls demanded the return of Rs 1,738 crore within seven days, threatening to forcefully acquire Shipra's property in Noida Sector 128.
A proposed solution involved selling 73 acres of land in Sector 128, which was mortgaged to Indiabulls by Shipra. Officials from Shipra and DLF discussed the matter, with DLF agreeing to pay Rs 1,250 crore. However, the complaint alleges that Indiabulls sold the pledged shares to M3M group company Final Step Pt Ltd for Rs 900 crore without proper authorization. The complaint also claims that Shipra discovered plans to sell other mortgaged properties, including the mall.
Ghaziabad police commissioner Ajay Mishra confirmed that an FIR has been filed and an investigation is underway. Indiabulls Housing Finance Limited (IHFL) and M3M have both dismissed the allegations as false and malicious. IHFL claims that Shipra defaulted on loan agreements and that legal proceedings for recovery were initiated.
An M3M spokesperson stated that the company follows the highest level of integrity and corporate governance and would not comment further as the matter is sub judice. Edelweiss officials chose not to comment. A senior executive from Edelweiss Asset Reconstruction company was also named in the FIR. However, the complaint does not clearly outline his role in the alleged fraud. Shipra group's complaint led to the Ghaziabad court ordering the police to register an FIR and investigate the matter.
The high stakes legal battle between Shipra group, Indiabulls, and M3M highlights the complexities and potential pitfalls in large-scale financial transactions in the real estate industry. As the investigation unfolds, it remains to be seen whether the allegations against Indiabulls and M3M hold merit, or if they are simply the result of a business disagreement gone awry.
In conclusion, Indiabulls and M3M face serious allegations of property usurpation filed by the Shipra group. The police have launched an investigation, and both companies deny any wrongdoing. The case underscores the importance of transparency, integrity, and adherence to legal processes in corporate dealings, particularly within the real estate sector.
This story was first published in ET Realty
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