The Economic Offences Wing has filed a chargesheet against builder Lalit Jain for manipulating property documents and deceiving a businessman from Nagpur by persuading him to invest Rs 12.50 crore in a redevelopment project located in South Mumbai. Jain failed to reveal that the property, known as 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, assuring them of a 45% equity stake in his company, Safeway Project Pvt. Ltd., along with an annual interest rate of 18%.
However, only 25% of the shares were actually allocated, and the principal investment along with interest was never returned, resulting in a total loss of ₹16.46 crore, which includes litigation costs, as stated in the chargesheet. The chargesheet indicates that prime real estate in Mumbai was fraudulently handled through companies established by the accused. These companies included Metro Projects Pvt. Ltd., Metro Global Ltd., and other shell corporations, which were allegedly utilized to obscure ownership and misappropriate funds, according to the chargesheet.
Investigators discovered that despite the Waqf Board’s restrictions on the sale or transfer of property, the accused entered into agreements with builders and financial institutions, securing substantial loans amounting to crores of rupees. These funds were subsequently diverted, resulting in significant losses to the Waqf Board.
The investigation revealed that Lalit Jain, in collaboration 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, as reported by the police. In one case, a prime Waqf property in Andheri was misrepresented as private land, mortgaged, and funds were siphoned off. Similarly, properties in Kurla and Goregaon were also misrepresented and exploited for commercial gain, according to the chargesheet.
Officials noted that the Waqf Board repeatedly issued notices, yet the accused continued to conceal the truth. Ultimately, following complaints from community members, the Economic Offences Wing registered the FIR.
The chargesheet has booked Lalit Jain and co-accused under serious offences of criminal breach of trust, cheating, forgery, and criminal conspiracy under the IPC, as well as relevant provisions of the Waqf Act.
