Mumbai, Maharashtra – In a significant development, a Mumbai court has granted bail to two developers, Anant A. Rane and Vikrant Sharad Vaidya, accused in a long-standing flat fraud case. The decision, delivered on July 5, 2024, by HHJ Abhijeet A. Nandgaonkar of the Designated Court under the Maharashtra Protection of Interest of Depositors (MPID) Act, came after the applicants and the complainant reached an amicable settlement.
Background of the Case: A Decade-Long Ordeal
The case, registered as Crime No. 520 of 2024 at Bandra Police Station, involved serious charges under various sections of the Indian Penal Code (IPC), including criminal breach of trust (Section 406), criminal misappropriation (Section 409), cheating (Section 420), and criminal conspiracy (Section 120B). Additionally, the accused faced charges under the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act (MPID Act) and the Maharashtra Ownership of Flats Act (MOFA), highlighting the gravity of the alleged financial and real estate malpractices.
The complainant, Smt. Meena Tavrani, a 70-year-old widow, and her son, were reportedly looking for a home in Mumbai when they were introduced to Bharat Magnani (now deceased), a partner of M/s Suchit Developers. Enticed by representations about the firm’s goodwill and a project for “Aryan Tower” in Bandra (West), Smt. Tavrani booked a 3 BHK flat (No. 901) and car parking.
Over time, she paid substantial amounts to M/s Suchit Developers: ₹30,00,000/- on December 5, 2005, and an additional ₹40,00,000/- in June 2006. Despite these payments, construction stalled after reaching the 8th floor by 2009. In January 2015, the complainant was shockingly demanded ₹92,52,000/- as escalation charges, out of which she paid ₹15,00,000/-.
Despite having invested a total of ₹85,00,000/- (which she raised by selling her ancestral property in Hyderabad), Smt. Tavrani never received possession of the flat. The mental distress led her to file a civil suit in the Bombay High Court, where a Court Receiver was appointed. The civil suit remains pending, and the FIR was lodged on April 2, 2023, with the accused being arrested on June 24, 2024. The investigating officer revealed that a total of ₹1,63,00,000/- from seven investors was involved in the alleged fraud.
Arguments in Court
The applicants, Anant A. Rane and Vikrant Sharad Vaidya, through their counsel Ld. Advocate Rohan Mahadik, vehemently denied the charges, claiming innocence and false implication. They argued that the matter was a purely civil dispute that had been given a criminal angle with malafide intent, using the police as a “recovery tool.” They asserted that IPC sections 406, 420, and 409 were not applicable to them and emphasized their reputable backgrounds and cooperation with the investigation.
However, Ld. A.P.P. Mrs. Chaitrali Panshikar for the State-EOW and the Investigating Officer countered these claims, highlighting the serious nature of the socio-economic offense. They stressed that the investigation was far from complete, requiring thorough examination of bank details, properties of M/s Suchit Developers, and the money trail. They also voiced concerns about the accused potentially tampering with evidence or absconding if released on bail, especially given the complainant’s vulnerable position as a widow left homeless due to the alleged fraud.
Ld. Adv. Mr. Vijay Jha, representing the intervenor, strongly supported the prosecution, detailing the complainant’s hardships and reiterating the high magnitude of the offense affecting numerous individuals.
The Turning Point: Amicable Settlement
After two days of intense arguments, a crucial development unfolded. The applicants and the complainant informed the court that they had amicably settled their dispute and intended to file Consent Terms. The court, after careful examination of these terms (marked as Exh.7) and confirming their voluntary nature with the complainant’s son, deemed that further adjudication on the bail application’s merits was unnecessary. The applicants’ counsel also undertook that the accused would sign the Consent Terms within three days of their release.
Bail Granted with Conditions
Consequently, the court granted bail to Anant A. Rane and Vikrant Sharad Vaidya, subject to the following conditions:
- Each applicant must furnish a personal bond of ₹50,000/- with one or two solvent sureties of the like amount.
- A cash security of ₹50,000/- is permitted provisionally for one month in lieu of the surety bond.
- The applicants must attend Bandra Police Station as and when required by the investigating officer on written intimation until the charge sheet is filed.
- They must inform police and the trial court of any change in their residential address.
- They are prohibited from threatening or influencing prosecution witnesses or hampering the investigation.
- The applicants cannot leave the territory of India without prior court permission.
- Crucially, they are directed to appear before the court within three days of their release to sign the Consent Terms.
This order brings a significant shift in a case that had entangled a vulnerable complainant in a prolonged legal and financial battle. While the immediate matter of bail has been resolved through settlement, the implications of the Consent Terms and the broader investigation into M/s Suchit Developers’ financial dealings will likely continue to be monitored.