In a major setback for Anchor Group (Shah Group Partners), a Judicial Magistrate in Vikhroli, Mumbai, has rejected a police closure report and ordered criminal proceedings against the group’s promoters and associates in connection with an alleged multi-crore real estate fraud.
The case, filed by Rajesh Champaklal Mehta of Shreenathji Group, accuses the Anchor Group promoters of forgery, cheating, criminal breach of trust, and misappropriation of funds in a joint development project. The police had earlier filed a closure report (C-Summary), but the court termed the investigation as “pro-accused” and found sufficient grounds to proceed.
Accused Named in the Case
The court has directed process against Rikhav Piyush Shah, Rushabh Piyush Shah, Mehul Jadhavji Shah, Hemang Jadhavji Shah, Piyush Vasanji Shah, Kapil Vishnu Bagala, and Harish Sitaram Sharma. The closure report was accepted only for Jadhavji Shah, who had retired from the partnership before the alleged offences.
Key Allegations
- Forgery of documents: Bank accounts allegedly opened with forged signatures of the complainant and partner; court noted YES Bank officials may have been complicit.
- Concealment of loan terms: Axis Finance loan sanction letter was allegedly hidden; revised conditions could have allowed takeover of the complainant’s share in case of default.
- Illegal sale of flats: 35 flats allegedly sold after authority expired, many below the agreed ₹17,740/sq.ft. despite market rates being ~₹22,000/sq.ft., raising suspicion of cash dealings.
- Misappropriation of funds: LLP funds diverted to personal accounts, relatives, and sister companies; accused drew remuneration without entitlement.
- Questionable practices: Marketing agency paid high fees despite zero sales; agreements altered to prevent complainant from accessing project details.
Court’s Decision
The magistrate ruled that the allegations have prima facie merit and directed proceedings under IPC Sections 406, 409, 420, 465, 467, 468, 471, 474, and 120B. The case is now registered as a Police Warrant Case (No. 1727/2024) in the 34th Court, Vikhroli.
This order paves the way for criminal trial against the Anchor Group promoters, marking a significant turn in the high-stakes real estate dispute.
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