Delhi Court Directs Police Investigation into Gurugram Commercial Project Fraud Allegations
A Delhi court has taken a significant step in addressing serious allegations of financial misconduct surrounding a prominent Gurugram-based commercial development. Judicial Magistrate Devanshi Janmeja has formally issued a notice and directed the police to submit a detailed action-taken report concerning a plea that accuses promoters of the 32nd Milestone project of cheating, fund diversion, and extensive financial irregularities.
Court Proceedings and Key Dates
The judicial notice was officially issued on February 5, with the court mandating that law enforcement authorities compile and present their findings. This matter is now scheduled for a further hearing on March 13, where the police report will be scrutinized. The application prompting this judicial intervention was filed by investor Arvind Gupta, a senior citizen, who has leveled serious accusations against the project's promoters and associated entities.
Detailed Allegations and Accused Parties
The legal plea names 32nd Vistas Private Limited, Growth Hospitality LLP, and their promoters, including Dhruv Dutt Sharma, Shirin Sharma, and Mamta Sharma. It outlines a comprehensive list of alleged offenses: cheating, forgery, criminal conspiracy, and criminal intimidation. In response, the application seeks multiple legal remedies to protect investor interests and ensure accountability.
Key Demands in the Plea Include:- Registration of a First Information Report (FIR) against the accused.
- Freezing of bank accounts linked to the project and promoters.
- Attachment of assets to prevent further dissipation.
- Conducting a forensic audit of the project's finances.
- Suspension of passports and issuance of look-out circulars for the promoters.
Investor Grievances and Financial Misconduct
According to the complaint, Arvind Gupta purchased a commercial unit in the 32nd Milestone project after receiving assurances that the area would be demarcated promptly. Promoters allegedly offered guaranteed lease rentals for an extended 30-year period, along with a flexible buyback option at any stage. A long-term lease agreement was executed, promising regular monthly rental income to investors.
However, the situation deteriorated significantly. The complainant alleges that lease-rental payments ceased abruptly from August 2025. Furthermore, promoters failed to deposit Tax Deducted at Source (TDS) amounts starting September 2024 and defaulted on critical financial obligations, including Goods and Services Tax (GST) dues, statutory filings, and employee-related contributions such as ESI and PF. These defaults have reportedly caused substantial losses to investors, employees, and the public exchequer.
Deceptive Practices and False Promises
The plea details a pattern of deceptive behavior by the promoters. Investors were repeatedly informed that rental and TDS amounts had been credited but were not reflecting due to purported "technical issues." These explanations later proved to be entirely false. Shockingly, fabricated TDS certificates were circulated among investors, despite no corresponding deposits appearing in official government records.
When investors sought to exercise their rights—whether through demarcation, possession of units, or invoking the buyback option—promoters allegedly expressed an inability to comply. This has raised serious concerns that the same commercial units may have been sold to multiple buyers, a practice indicative of fraudulent duplication.
Allegations of Fund Diversion and Siphoning
The complaint further raises alarming allegations of fund diversion and siphoning. It claims that despite earning substantial rental income from operational restaurants and commercial establishments within the project, the promoters failed to clear dues owed to investors, employees, financial institutions, and statutory authorities. The plea also alleges that significant borrowings were raised and subsequently misused for purposes unrelated to the project's development.
Operational Disruptions and Promoter Disappearance
The situation has escalated to the point where protests were held outside the project premises. Offices were allegedly shut down, and essential utilities such as electricity and water were disconnected due to non-payment of dues. Compounding the crisis, promoters are claimed to be untraceable, leaving investors and employees in a state of uncertainty and financial distress.
Investigation into Promotional Expenditure
In a notable addition, the application seeks an investigation into the expenditure on promotional campaigns and endorsements involving public figures. The plea clarifies that no allegations have been made against any celebrities; instead, the request is limited to examining the source of funds used for such high-profile marketing activities, to determine if investor money was improperly utilized.
Broader Context and Related Police Action
Separately, Gurugram Police have recently registered FIRs against the owner and certain officials linked to 32nd Avenue, a retail-and-entertainment hub in the same region. This action followed protests by investors over alleged non-payment of promised amounts, indicating a broader pattern of financial grievances in similar commercial projects in the Gurugram area.
The court's directive for a police action-taken report marks a critical development in this complex case, potentially paving the way for legal accountability and financial restitution for affected parties. The upcoming hearing on March 13 will be closely watched by investors, regulatory authorities, and the real estate sector at large.
