MUMBAI: In an unusual and significant decision, the Bombay High Court has redirected a builder fraud case under the Maharashtra Protection of Interest of Depositors (MPID) Act to the Mumbai Crime Branch, citing serious shortcomings in the investigation conducted by the Economic Offences Wing (EOW).
The court’s action followed a petition from victims claiming a scam exceeding ₹100 crore, expressing a loss of trust in the EOW’s investigation.
In a detailed ruling dated July 7, the court sharply criticized EOW Deputy Commissioner of Police Sangramsinh Nishandar for his lack of decisive action since assuming control of the case in March 2024. “It is evident that the DCP has made minimal efforts in the investigation. About ₹100 crore was misappropriated by the accused, and the DCP has failed to trace the money,” the court stated.
The court especially condemned the freezing of bank accounts, pointing out that some held only minimal balances of approximately ₹2,000 to ₹3,000, and criticized the fact that none of the accused’s personal accounts, vehicles, or real estate, aside from one project site, had been attached.
‘Neglect and Inattention’
Further critique followed the affidavit Nishandar submitted on July 15, with the court dismissing his reasons as “feeble excuses.” He argued that an anticipatory bail order restricted coercive action against the accused, limiting his investigation. However, the court countered that the order only protected against arrest, not the investigation process.
The court also admonished Nishandar for directing blame at the Income Tax Department, BKC, for not providing property details linked to PAN numbers. Upon investigation, it was found that the EOW’s communication only requested PAN details, not property records. “Blame is unjustly placed on the Income Tax Department while the Senior Police Inspector shows clear neglect,” it remarked.
Another significant error noted was the lack of follow-up on property transactions. The court indicated that on October 20, 2023, a notice was sent to the Joint Sub Registrar of Assurances, Andheri-IV and VI, concerning fresh registrations linked to the accused. Despite new agreements being recorded, no efforts were made to collect or review them by the EOW, indicating a lack of initiative from Investigating Officer Mr. Kate.
Moreover, notices sent to the Inspector General of Registration in November 2023 and March 2024 looking for property details of the accused were met with no response, as the EOW made no follow-up attempts. In December 2023, the BMC’s Building Proposal Department provided documentation related to the project, including approved plans and IOD receipts, but again, the EOW failed to act on this information.
Inattention to Account Freezing
The court recalled that on June 11, 2025, another division had instructed Home Department officials present to start attaching the properties of the accused and discontinue the sale of assets; yet, significant amounts continued to move through various accounts.
Specifically, ₹45 crore was found in an account that should have been frozen earlier, and by the time action was taken, nearly all of it had been withdrawn. In another instance, ₹13.14 crore flowed into an account following the FIR, with ₹13.16 crore later extracted. A third account saw ₹3.16 crore deposited and quickly transferred elsewhere.
“Now, notices are being issued to identify companies with independent accounts,” Nishandar asserted in his affidavit. But the court deemed this response as “too little too late,” quoting an old English saying: “locking the barn door after the horse has bolted.”
The court remarked that the accounts listed in the affidavit currently hold only ₹5,000 to ₹10,000, despite the fraud amounting to ₹45 crore. “It is evident that even though the affidavit spans 15 pages and refers to numerous documents, none have been submitted to this Court for examination,” the bench noted.
Responding to the petitioners’ request for a full change of the investigation team, the court has now assigned the case to the Mumbai Crime Branch under Joint Commissioner Lakhmi Gautam, who is tasked with determining his team. The next hearing is scheduled for July 30.
Case Overview
In September 2023, an FIR was lodged at Amboli Police Station against prominent developers Imtiyaz Maredia, Pyarali Maredia, and others, for allegedly defrauding 139 homebuyers of ₹45 crore.
The funds were collected under the pretense of constructing luxury residential towers named Meridian Heights in Jogeshwari. However, the project has been incomplete since 2008. Victims have also claimed that the raised funds might have been diverted for personal expenditure.
Victim Accounts
“I purchased a flat between 2020 and 2021, with possession promised by 2023. According to RERA, the builder was supposed to hand it over by the end of 2024, but the project remains unfinished,” lamented Abdul Malik Khan, one of the victims. “Construction has stagnated at the 12th floor for five years; the site is entirely shut down. Whenever we inquired, builders assured us work would resume within 15 days, promising ‘good news,’ but it never materialized. We’re experiencing immense mental strain. Despite spending around ₹2 crore, I am still living in a rented apartment.”
Ruknuddin Mansoori, a 62-year-old victim, stated that he intended to return to India from the UAE but is now left without a home. “In August 2008, I invested ₹87 lakh in Meridian Heights. The builder, Imtiyaz, assured me of possession, but I had to pressure them even to finalize an agreement in 2016. As a senior citizen, this flat was meant to be my retirement sanctuary, purchased with my savings. I do not seek a refund—I just want my flat, where I envisioned living with my family. My calls to the builders have gone unanswered.”
Attempts to reach Nishandar for comments were unsuccessful. Meanwhile, sources in the crime branch have indicated that a new team has been established.
