MUMBAI: The Economic Offences Wing has filed a chargesheet against builder Lalit Jain for falsifying property documents and defrauding a businessman from Nagpur by persuading him to invest ₹12.50 crore in a redevelopment project in South Mumbai. Jain failed to reveal that the property, Sanjana Building in Malabar Hill, was embroiled in litigation with the Waqf Board.
Jain convinced the complainant, Mahesh Goyal, and his family to invest ₹12.50 crore in the project with promises of a 45% equity stake in his Safeway Project Pvt. Ltd. and an annual return of 18%. However, only 25% of the shares were actually issued, and the investment along with interest was never reimbursed, accumulating a total loss of ₹16.46 crore, including legal fees, as per the chargesheet.
The chargesheet highlights that prime plots in Mumbai were handled fraudulently through companies established by the accused, including Metro Projects Pvt. Ltd. and Metro Global Ltd., which were used to obscure ownership and embezzle funds.
Investigators discovered that despite restrictions from the Waqf Board on property sales or transfers, the accused entered into agreements with builders and financial institutions, securing substantial loans that were later misappropriated, resulting in significant losses for the Waqf Board.
The investigation revealed that Lalit Jain, along with the directors of Metro Projects Pvt. Ltd., manipulated board resolutions and misrepresented information to the Registrar of Companies. Numerous forged powers of attorney and false affidavits were submitted to facilitate these fraudulent transactions, according to police reports.
In one case, a prime Waqf property in Andheri was falsely depicted as private land, leading to its mortgage and subsequent financial misappropriation. Similarly, properties in Kurla and Goregaon were also misrepresented for commercial gain, as stated in the chargesheet. Officials noted that the Waqf Board issued several notices, but the accused persisted in concealing the truth. The EOW ultimately registered an FIR following complaints from community members.
The chargesheet has charged Lalit Jain and his co-accused with serious offenses, including criminal breach of trust, cheating, forgery, and criminal conspiracy under the IPC, along with relevant sections of the Waqf Act.
