Mumbai News: EOW Registers FIR Against Everest Group Directors For Alleged ₹96.7 Crore Cheating In Mahalaxmi Property Redevelopment
A cheating case has been registered by the Mumbai Police Economic Offence Wing (EOW) against Everest Fincap Pvt Ltd (EFPL) directors for allegedly duping real estate investment company, along with an urban infrastructure real estate fund of Rs 96.7 crore for redevelopment of a prime property in Mahalaxmi.
The First Information Report (FIR) against EFPL directors Kishore Shah, Vimal Shah, Nainesh Shah and Sheryu Shah has alleged duped a real estate investment company of Rs 36 crore and an urban infrastructure real estate fund of Rs 60.7 crore in a proposed joint venture to develop seven acres of the defunct Bradbury Mills at Saat Raasta, Mahalaxmi.
The Urban Infrastructure Opportunities Fund part of the Urban Infrastructure Venture Capital Fund (UIVCF) which counts Anand Jain's Jai Corp and Reliance Industries as core investors UIVCF had filed a complaint real estate developers and partners of the Terraform Realty Group (erstwhile Everest Group) JV operating operates through its company Money Magnum Nest.
The complaint was lodged by Devesh Kumar Jamanaprasad Vyas, vice-president and vice-chairman of UIVCF alleging investments meant for arbitration settlements, legal dispute resolution and actual development were allegedly diverted by EFPL directors for personal use.
According to the EOW FIR lodged at Cuffe Parade police station under IPC sections for cheating, forgery and breach of trust against Everest Fincap and its directors had lured the investors with high returns for settling the Bradbury Mills property dispute and joint development of the prime real estate of 28,437.29 sq meters.
EFPL director Nainesh Shah denied the cheating case as false and claimed EOW had filed a closure report stating it was a civil dispute.
The mill estate was taken over by by the Debt Recovery Tribunal (DRT) following loan defaults by Bradberry Mills and in May 2005 EFPL now Money Magnum Nest Pvt Ltd acquired it for Rs 41 crore from DRT proceedings.
Money Magnum Nest became the new owner of around 7 acres of Bradbury Mills, situated next to Dagdi Chawl between Rippon Road and Haines Road in Mahalaxmi.
In 2007-08, UIVCF and other investors invested Rs 300 crore in three projects of Everest Group and took the developer to arbitration in 2012-13 for non-performance of the projects.
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