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Posted on: 2012-01-18/22:02:01 India - Fraud & Cyber Crime News Builders&Real Estate Complaints/
Five individuals, who had booked residential properties on the outskirts of Hyderabad, have moved a city court for an alleged fraud against MIMEC India Ltd.

According to MIMEC's latest filings to the Registrar of Companies, Kolkata, three ITC associate companies – Russell Investments Ltd, Divya Management Ltd and Antrang Finance Ltd – jointly hold 1,64,509 shares of Rs 10 each, representing 79.86 per cent of the paid-up equity of 2,06,006 shares of MIMEC.

The 8th Metropolitan Magistrate's court on November 22 took cognizance of the criminal complaints and issued order to begin proceedings against Kolkata-registered MIMEC and its directors under Sections 418/420/406 of CrPC.

The court also issued arrest warrants against the eight directors of MIMEC and two directors of a Hyderabad-based developer, for their alleged involvement in the case.

One of the MIMEC directors, Mr Jagdish Singh, obtained a stay on the proceeding for eight weeks from the Calcutta High Court on December 16. The High Court, however, asked Mr Singh to surrender before the Metropolitan Magistrate's Court.

The High Court on December 20 further stayed the proceeding before the 8th Metropolitan Magistrate for 10 weeks.

In an e-mail response to Business Line's queries, Mr S. Mukherjee, a director of MIMEC, confirmed the development. He, for and on behalf of the MIMEC Board, said: “Five criminal complaints, in the name of five different individuals but in identical language, have been filed against the Company and other parties including Mr J. Singh. Petitions challenging these complaints have been filed in the Hon'ble High Court of Calcutta on behalf of Mr Singh, and the court has stayed all further proceedings in these complaints.”

Meanwhile, in response to the Magistrate's summons, Mr Singh appeared in the Magistrate's court and obtained requisite legal relief in accordance with the usual procedure. “Since the matter is sub-judice, we are unable to comment any further, except to mention that the complaints are frivolous and vexatious”.

The complainants alleged that MIMEC in late 1980's offered to sell plots in a 2,000-acre township project Prakriti' about 36 km away from Hyderabad on the N.H. No. 9. Petitioners allege that though payments were made in several instalments to MIMEC, the project never took off.

According to the petition in 2011 complainants learnt: “Either the entire or parts of project land under Prakriti” had already been resold to several independent third parties including one Sri Sri Developers, who in turn have renamed the project or part thereof as “Rich Valley” and are re-selling plots to the general public at the rate of Rs 4,500 per Sq. Yd. and the same was done by Sri Sri Developers by issuing Brochures to the general public at large, with the active aid and assistance of the accused persons.
Source: D C Location : Kolkata  


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