Taloja project fraud: Builder Lalit Tekchandani remanded to ED custody

MUMBAI: A special Prevention of Money Laundering Act (PMLA) court on Monday remanded city builder Lalit Tekchandani, to the custody of the Enforcement Directorate (ED) till March 26. He has allegedly duped over 1,700 flat buyers for a housing project in Taloja in Navi Mumbai and siphoned off ₹423 crore.

“Investigation is at a very preliminary stage. Hence, in my opinion considering the gravity, magnitude and seriousness of the offence, an opportunity must be given to the ED to investigate ECIR thoroughly,” observed special judge MG Deshpande while pronouncing the order.

According to the prosecution, two FIRs were considered by the ED while seeking the mentioned permission. As per one FIR, Kharghar resident Ganesh Kundansingh Bist in the year 2010 found out about the project M/s Hex City/ Clan City of M/s Supreme Construction and Developers Pvt Ltd and subsequently decided to invest as it fit in his budget of ₹30 lakh. The project was to get ready by the year 2014 and by August 2014 Bist paid ₹31.29 lakh including the stamp duty and registration amount of the total ₹32.32 lakh that he had to pay.

Bist had been paying ₹16,000 every month for the last 14 years for a flat in Kharghar that he might never get as the builders who stopped the project work in the year 2017 had gone into hiding. The accused were identified as Manula Mehbulla Kachwala, Lalit Sham Tekchandani, his wife Kajol Tekchandani, Arung Hasanand Makhijani and other former employees of Supreme Construction and Development Pvt Ltd.

There were 1,800 people who booked flats, but 160 people had come together as per Bist, who approximately paid ₹44.25 crore in total.

According to the second FIR, another complainant Hima Meghraj Jadhavani had booked a flat in M/s Hex City/ Clan City and paid a total amount of 41 lakh, while his friend paid additional ₹32.60 lakh for 2 BHK flat. It was accused that 105 people were not given a flat by the accused.

The ED in its application, represented by special public prosecutor Kavita Patil, submitted that M/s Supreme Construction and Developers Pvt Ltd collected ₹423 crores from over 1,700 prospective buyers. “Possession of flats was to be made by 2016, however, till fate no possession has been given to any of the buyers. The said prospective buyers were cheated of their life savings and they are in lurch,” the remand application added.

It further alleged that Tekchandani had documents related to proceeds of crime.

“The respondent (Tekchandani) is the main perpetrator and the kingpin of cheating the common people at large and subsequent laundering of proceeds of crime. This has wider ramifications on the basic thread of the economy,” the ED contended in its application, seeking the custody of the accused for fourteen days.

Vehemently rebutting the allegations, senior advocate Taraq Sayad, representing Tekchandani, submitted that the delay in handing over possession to the flat buyers was sheerly due to necessary statutory compliance with the municipal corporation and other authorities and hence, there being no case of money-laundering, adding that the accused was innocent.

“I would like to invoke the Right to Silence. I further submit that any statement which will be recorded when I am in the custody of Directorate of Enforcement will be under coercion and involuntary,” Tekchandani submitted on Monday.