HC denies anticipatory bail to builders, says justice for such fraud is long drawn process for buyers

Read Order: Saroj Rani and others v. State of Haryana 

LE Correspondent

Chandigarh, July 26, 2021: Declining anticipatory bail to builders booked for duping hundreds of buyers, the Punjab and Haryana High Court has held that there are serious allegations against them and they are required for custodial interrogation to ensure a fair and effective probe.

The petitioners, being the Directors of the Company, have allegedly duped the gullible buyers by offering 639 flats and 39 villas. The buyers later crowded around the court demanding that they be given the possession of their flats or villas, respectively.

“It is a double whammy for the innocent buyers because justice for such fraud like the present one, is a long drawn process and uncertain, due to the complex nature of the dispute. As per the prosecution version, the petitioners have committed the offence with a cool calculation and deliberate designs with an eye on personal profit regardless of the consequence to the buyers, who have invested their hard-earned money in the project,” observed Justice Harnaresh Singh Gill.

“Keeping in view the allegations levelled against the petitioners, this Court finds that in case, the petitioners are granted the benefit of anticipatory bail, the same would definitely hamper the effective and fair investigation. Considering the stage of the investigation and to unearth the fraud played upon the innocent buyers, the petitioners are required for custodial interrogation. Therefore, finding no merit in the present petition, the same is dismissed,” ruled the bench.

The fact of the case is that the petitioners are Directors of the Company – ABPL – which in collaboration with M/s Hisar Real Estate Private Limited had floated a project under the name and style of Hisar Heights, which was later on renamed as Regency Park comprising 639 flats and 39 villas.

They were booked for cheating, fraud and other relevant sections after investors complained that the company had failed to deliver the possession of the apartments and villas within the stipulated period of 39 months and the Directors of the Company had diverted the money, which was collected from the buyers, for their own use.

The FIR was based on the order dated April 10, 2019 passed by the Haryana Real Estate Regulatory Authority (HRERA), Panchkula, and the report of the auditor, appointed by the order of HRERA, on January 23, 2019, which revealed that the company misappropriated the money deposited by the buyers by diverting it to their other companies.

The petitioners, however, claimed that the report of the auditor does not reflect the correct position of the accounts. The entire funds received by the Company, as verified from the financial statements and record, would not reflect any misappropriation or embezzlement of the funds as alleged in the FIR.

They further prayed before the high court that the construction of the villas is  complete and their possession has been handed over to the allottees and the construction of a large number of flats also stands completed. Only a few of the candidates are pressuring the petitioners so that the Company could not insist that the pay their outstanding dues.

The bench, however, found that in case the petitioners are granted the benefit of anticipatory bail, the same would definitely hamper an effective and fair investigation. Considering the stage of the investigation and to unearth the fraud played upon the innocent buyers, the petitioners are required for custodial interrogation, the HC held.