The Principal City Civil and Sessions Court in Bengaluru has dismissed the regular bail application of 46-year-old Manjunath T.K., the primary accused in a high-profile real estate scam involving Eagle Tree Developers and Builders. Presiding Judge Sri C.M. Joshi ruled that the gravity of the allegations, which involve cheating dozens of home seekers using forged documents, necessitates continued judicial custody while the investigation remains in progress.

The petitioner, Manjunath T.K., was seeking release following his arrest by the Rajajinagar Police in connection with Crime No. 69/2022. The case involves serious charges under Sections 420 (Cheating) and 468 (Forgery for purpose of cheating) of the Indian Penal Code, alongside Section 21 of the Banning of Unregulated Deposit Schemes (BUDS) Act, 2019.

The Modus Operandi of Eagle Tree Developers

The legal proceedings were initiated based on a complaint filed by Pushpak Kumar. According to the prosecution, the petitioner and three other accomplices operated an entity named Eagle Tree Developers and Builders. They allegedly used attractive advertisements to lure middle-class families and individuals seeking to purchase residential sites or houses in Bengaluru.

The complainant stated that he was initially shown Site No. 108 at New Garden City Layout and was induced to pay an advance of Rs. 10,000. Subsequently, the accused changed the deal, showing him Site No. 51, which was purportedly allotted to a woman named Sangeetha Bhat. Over a series of transactions, the complainant paid a total of Rs. 3,00,000, believing the deal was legitimate.

However, the fraud came to light when the complainant attempted to verify the documents for a loan from LIC Housing Finance. The financial institution informed him that the sale agreement and related papers were fake. Upon closer inspection, the complainant discovered that the signatures on the documents were forged. When he confronted the accused and demanded his money back, the office of Eagle Tree Developers and Builders was found locked, and the accused had absconded.

Allegations of Mass Cheating and BUDS Act Invocation

During the course of the investigation, the police discovered that Pushpak Kumar was not the only victim. Evidence suggested that approximately 30 other people had been cheated using a similar pattern of deception. Because the accused were allegedly collecting money from the public under the guise of real estate development without proper regulation, the Investigating Officer invoked the Banning of Unregulated Deposit Schemes (BUDS) Act.

The prosecution argued that the money collected from the public was being laundered or invested elsewhere. They contended that Manjunath T.K. was the mastermind behind the operation and that his interrogation was vital to tracing the proceeds of the crime and identifying further investments made using the victims’ money.

Defense Claims and Judicial Reasoning

Represented by Sri Harish Prabhu S., the petitioner argued that he was merely a real estate agent and not a principal party to the fraud. The defense claimed that Manjunath T.K. had only introduced the complainant to the site owners and that the majority of the funds were transferred directly to Sangeetha Bhat and her son, Shivakumar. The petitioner maintained that he was a victim of circumstances and was willing to refund the portion of the money he had received.

Judge C.M. Joshi, however, found the defense’s “real estate agent” theory inconsistent with the facts. The court noted that if the petitioner were a bona fide agent, the complainant would not have been provided with forged agreements. The court highlighted that records showed more than 30 victims were induced to pay large sums, and copies of several suspicious agreements were found in the possession of the accused.

The judge observed that granting bail at this stage would jeopardize the investigation, as there is a high probability that the accused would tamper with evidence or influence the victims who are currently trying to recover their hard-earned money. The court emphasized that the interest of “hapless depositors” must be protected over the liberty of an accused where a prima facie case of organized fraud exists.

With the dismissal of the bail petition, Manjunath T.K. remains in judicial custody at the Bengaluru Central Prison as the Rajajinagar Police continue their efforts to recover the defrauded funds.