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India Today
a day ago
- Politics
- India Today
Court shuts Rs 30,000 crore Mumbai land scam case involving real estate tycoon
A special court in Mumbai has accepted the closure report filed by the Anti-Corruption Bureau (ACB) in a decades-old case against prominent builder Niranjan Hiranandani and others. The case involved allegations of misuse of land in Powai originally allotted for affordable housing that was allegedly used to construct luxury Judge SE Bangar accepted the ACB's closure report, saying that there was no proof of corruption, monetary gratification, or criminal conspiracy. The judge said, 'The ACB, Mumbai, has rightly concluded that no criminal offence warranting prosecution is made out,' and added, 'The closure reports are based on cogent investigation, verified compliance, and supported by judicial orders of the constitutional court.'advertisementThe allegations were linked to the Powai Area Development Scheme (PADS), executed by Lake View Developers—a Hiranandani Group entity—alongside the Mumbai Metropolitan Region Development Authority (MMRDA) and Brihanmumbai Municipal Corporation (BMC) under a Tripartite Agreement signed on November 19, 1986. Activists had accused the developer of diverting concessional land, meant for affordable housing, to construct luxury flats, allegedly causing a Rs 30,000 crore loss to public funds. In 2012, the ACB registered an FIR following a sessions court direction based on a complaint by activist Santosh Daundkar. The complaint named Hiranandani, then Urban Development Department Secretary Thomas Benjamin, and unknown officers from MMRDA and BMC. Daundkar sought the case be handed over to the CBI and Enforcement ACB initially filed an "A summary" report in 2013, indicating insufficient evidence. This was rejected by the court in 2018. Following a re-investigation, a closure report was filed again in 2019, which Daundkar 2008 and 2010, three Public Interest Litigations (PILs) were filed by individuals including activist Medha Patkar, raising concerns over developments in the PADS region. However, while disposing of the PILs in 2023, the High Court found that construction and handover obligations were fulfilled. A court-appointed committee confirmed to these proceedings, the ACB said, 'In view of the PILs having attained finality, there is nothing brought on record by the Complainant to infer any element of any criminal offence whatsoever on the part of the alleged accused persons.'In its final report, the ACB said it found no evidence that officers of MMRDA, BMC, or the Urban Development Department engaged in illegal activities or that the developer breached any terms of the Tripartite Agreement or earned unlawful court also said that the High Court had 'conclusively examined' issues related to affordable housing obligations, flat amalgamation, and flat sales. During its investigation, the ACB found no breach of agreement terms, irregularities, or illegal actions by the accused. IN THIS STORY#Mumbai#Maharashtra
Time of India
2 days ago
- Business
- Time of India
Special court closes Powai land case against Niranjan Hiranandani, others
MUMBAI : A special court Monday closed criminal proceedings against developer Niranjan Hiranandani and others in the alleged Rs 30,000 crore Powai Area Development Scheme (PADS) land scam case. The judge observed that prosecuting the accused would not be in keeping with justice and that there was no prima facie case after the state Anti-Corruption Bureau submitted a closure report saying there was no evidence of corruption, monetary gratification, dishonest intention, or criminal conspiracy. The case relates to allegations that prime public land leased at concessional rates for affordable housing was diverted to construct luxury real estate and commercial premises by private developers, notably Niranjan Hiranandani, managing director of the Hiranandani group . "Having perused the closure report, I find that no material or anything incriminating, which could connect the accused…with the alleged crime has been found…in my opinion it would thus, be futile to unnecessarily prosecute the accused.., sans any material against them," special judge Shashikant Eknathrao Bangar said in a 119-page order made available on Tuesday. The judge said the closure reports are based on cogent investigation, verified compliance, and supported by judicial orders of the Bombay high court. Pointing to the HC's orders in three related PILs alleging breach of agreement with govt and misuse of FSI and development rights, the judge said allegations concerning breach of affordable housing obligations, amalgamation of flats, and sale of flats were conclusively examined and remedied. The judge noted that the high court had constituted a three-member joint committee to verify compliance and accepted reports in 2016 and 2017, which confirmed that out of 2,200 flats of 80 sqm, 1,337 were constructed, 12 locked, and 887 remained to be completed as per the plan and timeline. "The directions for completion of the remaining flats were passed with monitoring provisions. Any further breach or non-compliance was made subject to the court's ongoing supervision, obviating the need for separate criminal proceedings…the ACB rightly concluded that no prosecutable offence remained. There was no material to show abuse of public office or conspiracy," the judge said, adding that the probe was a 'fair' one. The ACB, through public prosecutor Ramesh Siroya, submitted before the court that sale of larger flats and amalgamation, though deviating from the spirit of the Agreement, was retrospectively regularised through the high court hearing the PILs. The agreement dated 19 Nov 1986, was executed between the state, MMRDA, and the developer for an area of 232 acres. Based on activist Santosh Daundkar's plea alleging that Hiranandani and others were involved in irregularities in the housing project, a court in 2012 ordered a probe. The ACB filed an FIR against Hiranandani and senior urban development department officer Thomas Benjamin and others under the Prevention of Corruption Act and the IPC. In 2013, the ACB sought to close the case on the grounds that there wasn't sufficient evidence. Daundkar opposed the move. The ACB's closure report, which was rejected by the court on Jan 4 2018, led to a directive for further investigations. Following this, a second closure report was submitted on Aug 30, 2019. Daundkar challenged this report too and sought a reinvestigation. He alleged malafide transfer of the investigating officer, who was purportedly preparing to file a chargesheet against top officials and the builder. Daundkar argued that the final report was a result of administrative interference and suppression of crucial material. He contended that the final report is based heavily on the HC's civil PIL orders and ignores criminal aspects. He sought a fresh probe by an independent agency. The ACB said the allegations were not supported by documentary evidence or witness statements. "There are around 8,000 residents (approx) residing in PADS. None of the residents have filed any criminal complaints over the years pertaining to the development carried out in PADS," it submitted. It also pointed out that Daundkar had neither purchased any commercial premises nor was a resident or investor in the development. The judge rejected Daundkar's plea against the closure report, saying it reiterated allegations already considered in PILs and brought no new substantive material.
Hindustan Times
2 days ago
- Politics
- Hindustan Times
Legal battle ends in Hiranandani Gardens case
MUMBAI: The curtain has come down on the legal battle over alleged corruption in the development of Hiranandani Gardens, the landmark township built by Lake View Developers of the Hiranandani Group in Powai. The case revolved around the allegation that the developer had used 233 acres of government land earmarked for affordable housing to build luxury apartments and sold them at a premium. A special court trying cases under the Prevention of Corruption Act on Monday accepted the second closure report submitted by the Maharashtra Anti-Corruption Bureau (ACB), which stated that there was no criminality involved in the implementation of the Powai Area Development Scheme (PADS), also called 'Hiranandani Gardens'. The verdict brings relief to developer Niranjan Hiranandani, former urban development department secretary TC Benjamin and others who were named as accused in the case. 'In my opinion, this is not a fit case to proceed against the accused persons and I am inclined to accept the closure report for the reasons mentioned herein above,' said Judge Shashikant Bangar of the special court while accepting the second closure report filed by the ACB. The special court had rejected the ACB's first closure report filed in 2018, and ordered a further investigation. While accepting the second closure report on Monday, the court noted that none of the allegations levelled by the complainant against the developer and others had been proved to be true by the investigation. The First Information Report (FIR) was filed in 2012 on a complaint by activist Santosh Daundkar, who alleged that Hiranandani had colluded with Benjamin and officials of the Mumbai Metropolitan Region Development Authority (MMRDA) and the Brihanmumbai Municipal Corporation (BMC) to build luxury housing on government land earmarked for affordable houses. The project, called the Powai Area Development Scheme (PADS), goes back to 1986, when the state had handed over 233 acres on an 80-year lease at a rate of 40 paise per acre, in return for constructing affordable housing. Daundkar alleged that Hiranandani had violated the agreement by building a posh residential complex. He also alleged that the builder had failed to hand over 15% of the developed flats to the state government, in accordance with the agreement. The ACB filed its second closure report on August 30, 2019, which means the investigation had concluded and no offence was made out against the accused. They had neither engaged in any illegal activities or fraud in PADS, nor had the developer violated the tripartite agreement or gained any illegal profit, nor had the government suffered any loss, the report stated. The court observed that the ACB had twice investigated the case, adding that 'it is clear that the said investigating officers have taken all relevant records, papers, documents from MMRDA and other authorities and they have collected all the relevant witness statements of the officials'. The special court said that based on orders passed by the high court, the developer had built 1,511 flats of 40sq m and 887 flats of 80sq m each, and handed over possession of 256 flats to MMRDA in 2022. 'The investigation has been carried out fairly, and as per the directions of this court,' said Special Judge Shashikant Bangar. After the ACB filed its second closure report, Daundkar had filed a protest petition, alleging that the investigating officer Pramod Bhosale, who was in the process of filing a charge sheet, was transferred midway. This amounted to administrative interference and resulted in suppression of crucial material. He alleged that the officials failed to prevent the misuse of government land and monitor the PADS implementation. However, the special court said, 'The protest petition lacks merit in view of the binding adjudication by the Hon'ble High Court of Bombay.' The court, however, said the dispute is purely civil in nature. 'There is no alleged breach of terms of the tripartite agreement, any other irregularities and illegal acts found to be committed by the accused/respondents. The investigating officer found that there are no sufficient and concrete grounds to proceed against the accused/respondent persons to file a charge sheet against the said accused persons,' the court added. The high court in 2016 and 2017 had accepted the reports that of 2,200 flats of 80sq m, 1,337 flats were constructed, 12 were locked, and 887 remained to be completed, as per the plan and timeline. 'In view of the accepted compliance framework and absence of mens rea or criminal intent proven during investigation, the ACB rightly concluded that no prosecutable offence remained.' The court held that there was no material to show abuse of public office or conspiracy by the public authorities or developers.
Time of India
2 days ago
- Business
- Time of India
Spl court closes Powai land case against Hiranandani
Mumbai: A special court Monday closed criminal proceedings against developer Niranjan Hiranandani and others in the alleged Rs 30,000 crore Powai Area Development Scheme (PADS) land scam case. The judge observed that prosecuting the accused would not be in keeping with justice and that there was no prima facie case after the state Anti-Corruption Bureau submitted a closure report saying there was no evidence of corruption, monetary gratification, dishonest intention, or criminal conspiracy. The case relates to allegations that prime public land leased at concessional rates for affordable housing was diverted to construct luxury real estate and commercial premises by private developers, notably Niranjan Hiranandani, managing director of the Hiranandani group. "Having perused the closure report, I find that no material or anything incriminating, which could connect the accused…with the alleged crime has been found…in my opinion it would thus, be futile to unnecessarily prosecute the accused.., sans any material against them," special judge Shashikant Eknathrao Bangar said in a 119-page order made available on Tuesday. The judge said the closure reports are based on cogent investigation, verified compliance, and supported by judicial orders of the Bombay high court. Pointing to the HC's orders in three related PILs alleging breach of agreement with govt and misuse of FSI and development rights, the judge said allegations concerning breach of affordable housing obligations, amalgamation of flats, and sale of flats were conclusively examined and remedied. The judge noted that the high court had constituted a three-member joint committee to verify compliance and accepted reports in 2016 and 2017, which confirmed that out of 2,200 flats of 80 sqm, 1,337 were constructed, 12 locked, and 887 remained to be completed as per the plan and timeline. "The directions for completion of the remaining flats were passed with monitoring provisions. Any further breach or non-compliance was made subject to the court's ongoing supervision, obviating the need for separate criminal proceedings…the ACB rightly concluded that no prosecutable offence remained. There was no material to show abuse of public office or conspiracy," the judge said, adding that the probe was a 'fair' one. The ACB, through public prosecutor Ramesh Siroya, submitted before the court that sale of larger flats and amalgamation, though deviating from the spirit of the Agreement, was retrospectively regularised through the high court hearing the PILs. The agreement dated 19 Nov 1986, was executed between the state, MMRDA, and the developer for an area of 232 acres. Based on activist Santosh Daundkar's plea alleging that Hiranandani and others were involved in irregularities in the housing project, a court in 2012 ordered a probe. The ACB filed an FIR against Hiranandani and senior urban development department officer Thomas Benjamin and others under the Prevention of Corruption Act and the IPC. In 2013, the ACB sought to close the case on the grounds that there wasn't sufficient evidence. Daundkar opposed the move. The ACB's closure report, which was rejected by the court on Jan 4 2018, led to a directive for further investigations. Following this, a second closure report was submitted on Aug 30, 2019. Daundkar challenged this report too and sought a reinvestigation. He alleged malafide transfer of the investigating officer, who was purportedly preparing to file a chargesheet against top officials and the builder. Daundkar argued that the final report was a result of administrative interference and suppression of crucial material. He contended that the final report is based heavily on the HC's civil PIL orders and ignores criminal aspects. He sought a fresh probe by an independent agency. The ACB said the allegations were not supported by documentary evidence or witness statements. "There are around 8,000 residents (approx) residing in PADS. None of the residents have filed any criminal complaints over the years pertaining to the development carried out in PADS," it submitted. It also pointed out that Daundkar had neither purchased any commercial premises nor was a resident or investor in the development. The judge rejected Daundkar's plea against the closure report, saying it reiterated allegations already considered in PILs and brought no new substantive material.
Indian Express
2 days ago
- Business
- Indian Express
Court accepts ACB closure report in Powai land ‘fraud'
ACCEPTING THE closure report filed by the Anti-Corruption Bureau (ACB), a special court has said that no criminal case is made out into allegations of a Rs 30,000-crore land fraud in Powai, clearing businessman Niranjan Hiranandani and others. The proceedings related to the allegations that in the Powai Area Development Scheme intended for affordable housing, losses were caused to the public exchequer by diverting the land for the construction of luxury apartments by developers, including Hiranandani. Special Judge S E Bangar on June 2 accepted the 29-page closure report filed by the ACB, while also rejecting a protest petition filed by activist Santosh Daundkar. 'There is no material worth the name to even create a suspicion indicative of any offence by the accused persons,' the court said. It also said that around 8,000 residents of the housing scheme have not filed any criminal complaints or supported the complainant, Daundkar, and ruled that he is neither a resident nor an investor in the scheme. Stating that the case was of a 'civil nature', the special court also said that proceedings before the Bombay High Court related to the housing scheme had been disposed of and in light of compliance done by the developers, nothing was brought on record to infer any criminal offence. The ACB began its probe into the allegations in 2012 but had filed a closure report in 2013, which was first rejected by the court in 2018 and a further probe was ordered. The ACB reinvestigated and again submitted a closure report in 2019, maintaining that no offence was found. The ACB said that the issues raised were that of policy and contractual violations and were not of criminal culpability. For development of the Powai area, a tripartite agreement was executed between the state of Maharashtra, Mumbai Metropolitan Region Development Authority and Hiranandani Developers Pvt Ltd on November 19, 1986, related to 232.32 acres of land. The agreement required development of 50 per cent flats each of 40 sq metres and 80 sq metres, and 15 per cent of the developed flats to be handed over to the state. It was alleged that instead of low-income affordable housing, unauthorised amalgamated luxury units were constructed, leading to commercial exploitation of land and violation of the terms of the agreement. The ACB, while seeking closure of the case, relied on orders by the high court, where separate proceedings were filed, referring to three Public Interest Litigations, which were disposed of in 2023. The ACB argued that the order settled the issue and no grievance remains. The high court had disposed of the PILs, observing that all contractual obligations under the 1986 agreement were fulfilled and compliance was made of its earlier interim orders, including directions for the construction of 2,661 flats of the agreed upon square metres and handing over of 256 flats to the government. Daundkar had claimed that the PILs addressed compliances with housing policy but criminal culpability remained. His plea seeking access to internal notings related to the scheme were rejected by the court stating that they were 'confidential'. 'There is no alleged breach of terms of the tripartite agreement, any other irregularities and illegal acts found to be committed by the accused/respondents,' the court said, putting an end to the long-pending proceedings.
