Mumbai Police EOW Submits Chargesheet in Major Loan Diversion Case
The Economic Offences Wing (EOW) of the Mumbai police has submitted a comprehensive chargesheet against three partners of Sunshine Developers, accusing them of financial misconduct in a construction loan case involving approximately Rs 90 crore. The loan was obtained from LIC Housing Finance Limited in 2017 for two projects located in Bhandup, but investigators uncovered significant fund diversion.
Alleged Diversion and Misuse of Funds
According to the chargesheet, out of the Rs 90 crore loan, Rs 18.22 crore was allegedly diverted into other companies and personal accounts, violating the loan conditions. This misuse led to the cessation of construction work at the project in 2019, ultimately resulting in the company's bankruptcy and causing substantial financial losses to both the complainant and the lender.
The EOW has named Pankaj Bhuta, Kashyap Mehta, and Atul Bharani as the accused, filing charges under IPC sections 420 for cheating and 406 for forgery. Police reported that when officials attempted to serve notices to these individuals for court appearance during the chargesheet filing, none were available, and one accused's wife refused to accept the notice.
Background of the Fraud Allegations
The case originates from an FIR lodged by complainant Pratik Vira, a construction and finance entrepreneur. Vira alleged that he was deceived into investing Rs 150 crore from his group into the Sunshine Group, later facing fraud through forged documents and unauthorized loans totaling Rs 250 crore. He and his father, Jayesh Vira, began investing in 2006 after promises of high returns and a business partnership, eventually becoming shareholders and directors in multiple group companies but claiming no control over financial decisions.
Vira further stated that the Sunshine Group secured loans from institutions like ICICI Prudential and LIC Housing Finance Ltd under fraudulent pretenses. Specific allegations include a Rs 25 crore loan taken in his name without consent in 2015, a Rs 55 crore loan in 2016, and the Rs 90 crore construction loan in 2017, with Rs 18.22 crore allegedly siphoned off.
Investigation Findings and Legal Proceedings
The EOW chargesheet details that the accused, through Sunshine Housing Pvt. Ltd., took the construction loan for the projects. Investigators found that from Rs 19.62 crore disbursed, Rs 18.22 crore was diverted. Large amounts were transferred from Sunshine Housing Pvt. Ltd. to Mayurpankh Properties Pvt. Ltd. and other entities in multiple transactions between October and November 2017, with funds not used for construction but instead diverted to personal accounts.
Part of the diverted funds was used to purchase flats in the Samruddhi Garden project in the names of the accused, leading police to seal these properties. The chargesheet emphasizes that the accused violated loan agreement conditions, diverted project funds without lender permission, and misappropriated company funds for personal gain.
Tensions between Vira and the Sunshine Group escalated as he questioned financial irregularities, resulting in his removal from company operations. Legal battles have ensued in the National Company Law Tribunal (NCLT), the National Company Law Appellate Tribunal (NCLAT), and the Supreme Court, highlighting the complexity of the case.
