HC pulls up police for not lodging FIR against real estate firm on cheating complaint

The Delhi High Court has pulled up the police for not lodging a case of cheating against a real estate firm for allegedly cheating several persons by inducing them to invest in its project to build a mall in north Delhi on a false promise of ownership of shops and has directed registration of an FIR.

Justice Vipin Sanghi said the reluctance shown by the Delhi Police in lodging a case despite disclosure of commission of serious offences, including criminal breach of trust and forgery, and its opposition to such an order in the lower courts and the high court "shakes the confidence" and raises doubts "as to whether the police is truly interested in performing its statutory obligations".

The judge also said that non-registration of an FIR has led to "serious miscarriage of justice" to the petitioners, represented by senior advocate Ravi Gupta and advocate Dhanesh Relan.

"The possibility of the accused (Today Homes and Infrastructure Pvt Ltd, its CMD V K Ghambir and Director Arun Nayyar), who are builders, having deep pockets, influencing the machinery cannot be ruled out," the high court said and added that though it was inclined to transfer the probe to CBI, it was refraining to do so "in the hope that Delhi Police would make all endeavours to redeem themselves and restore the shaken confidence of the court".

The court also imposed cost of Rs 10,000 each on the firm, and its two officials and directed them to pay the amount within two weeks from August 23, the date of the order which also said that if the petitioners, the complainants who claimed to have been cheated, were not satisfied with the manner and pace of the investigation, they can move a plea for transferring the probe to another independent agency like the CBI.

The high court also quashed the magisterial and sessions courts orders rejecting the complainants petitions for registration of an FIR in the matter, saying "serious miscarriage of justice has taken place by denying to the petitioners their prayer for direction to the police to register a case on their complaint".

"The petitioners have been left high and dry and with no satisfactory remedy. They have been left to fend for themselves, when they are not possessed of the machinery and authority of the State," the court said and added that their complaints disclose commission of serious penal offences of cheating, criminal breach of trust and forgery for cheating.

While the offences of cheating, under section 420 of IPC, and forgery for cheating, under section 468 of IPC, carry a maximum punishment of seven years jail term, criminal breach of trust as per section 406 of IPC entails imprisonment of maximum three years.

According to the complainants, the firm's officials induced them to invest in their project -- North Gate Mall in north Delhi -- on "wrongful inducements" that the shops the petitioners would get would only be leased out to reputed brands and till it was done, the investors/owners would be paid a monthly rental by the firm.

However, the project was not completed in time, possession of the shops was not handed over and the rents were only paid for a few months by another firm, allegedly connected to the accused, the complainants had claimed in their plea.

They also alleged that the mall was not even completed and was sealed by the municipal corporation for violation of various building norms.

When they approached the police to lodge an FIR it refrained from doing so and when they moved the lower courts for such a direction, the relief was denied, the petitioners claimed in their appeal in the high court.