The Economic Offences Wing (EOW) of Mumbai has registered a First Information Report (FIR) against Ecstasy Realty Private Limited and its key promoters and associated entities, alleging a large-scale financial fraud amounting to approximately ₹600 crore. The case stems from a detailed complaint filed by Edelweiss Asset Reconstruction Company Limited (EARCL), a defaulting borrower of Ecstasy Realty.
The FIR, a copy of which available with SquareFeatIndia, was registered with the Juhu Police Station on June 11, 2025, at 7:16 PM. The alleged offenses occurred between March 23, 2018, and March 31, 2023.
Individuals and Entities Named in the FIR:
The FIR names several individuals and companies involved in the alleged fraud:
- Ecstasy Realty Private Limited
- Shobhit J. Rajan: Promoter-Director of Ecstasy Realty
- Naresh Bajaj: Director of Ecstasy Realty
- Pulin Bole: Director of Ecstasy Realty
- Pranav Bajaj: Director of Ecstasy Realty
- Shivani Verma: Director of Ecstasy Realty
- Prabal Infra Agro Farms Pvt. Ltd.
- Maharashtra Eco Green Pvt. Ltd.
The complaint was filed by Ruchi Manilal Shah, Assistant Vice President at Edelweiss Asset Reconstruction Company Limited.
Nature of the Alleged Fraud:
According to the FIR, Ecstasy Realty raised ₹600 crore through secured Non-Convertible Debentures (NCDs) to finance a residential project named “Parthenon”. The Edelweiss Group companies subscribed to 450 NCDs, while other individual investors subscribed to the remaining 150 NCDs. The DTD-1 agreement stipulated an annual interest rate of 15% and a redemption period of five years.
The debenture amount was intended for specific purposes, including:
- Refinancing existing financial indebtedness from Union Bank of India (INR 400 Crore)
- Creation of cash reserve (INR 21 Crores)
- Funding interest payment reserve (INR 21 Crores)
- Payment of arranger and placement fees (INR 10 lakhs and INR 4.9 Crore respectively)
- Part payment of consultation fees for Project 2 (INR 8.5 Crores)
- General corporate purposes, investments, loans, or repayment of unsecured loans (INR 144.5 Crores)
However, Edelweiss ARC’s complaint alleges that Ecstasy Realty failed to record transactions in official documentation and unlawfully diverted a significant portion of the funds to unrelated accounts. Fake utilization certificates were reportedly submitted to justify the misuse of funds.
A due diligence report prepared by Pipara & Company LLP in March 2024 revealed discrepancies in fund utilization. The report indicated that out of the total ₹600 crore funding, ₹141.95 crore was transferred to other bank accounts of Ecstasy, and that Ecstasy operated bank accounts in addition to the designated escrow account.
Specific Instances of Fund Diversion Highlighted in the FIR:
The FIR details several alleged diversions of funds from Ecstasy Realty’s Bank of India account, totaling over ₹139 crore:
- Excess repayment to Parshwa Developers Private Limited: ₹3,51,82,461 was transferred, which was ₹24,82,461 more than the outstanding amount mentioned in the information memorandum.
- Transfer to Promoter Shobhit Rajan’s Personal Account: ₹15,64,69,858 was transferred to Shobhit Rajan’s personal savings account and then used to repay his personal overdraft loan of ₹12 crore from Bank of India. The company allegedly passed no board resolution for this transfer.
- Investment in Maharashtra Eco-Green Private Limited (MEGPL): ₹84,65,92,500 was transferred to Prabal Infra Agro Farms Pvt. Ltd. (a company owned by Shobhit Rajan) for the purchase of 100% shares of Maharashtra Eco Green Pvt. Ltd. (MEGPL). This investment was made without the approval of NCD holders and despite MEGPL’s declining net worth and lack of revenue generation capability. A significant portion of this amount (₹71,36,09,589) was used by Prabal Infra Ltd. to repay a loan taken in 2012 from Minix Holding Pvt. Ltd. The remaining ₹13 crore was transferred to Shobhit Rajan’s personal account and subsequently used to repay a loan from KKR India Asset Finance Ltd..
