Bombay HC wants list of Bhagtani Riyo Victims

16th September, 2017, Mumbai:  If you are a aggrieved flat-buyer in Bhagtani Riyo project in Mira Road, smile. Bombay High Court has given you a huge opportunity today to get your money back. At the anticipatory bail application no. 1533 of 2017 held yesterday evening for extension of pre-arrest bail granted to Dipesh, Mukesh and Lakshman Bhagtani, Bombay High Court directed the advocates of intervenors to submit lists of holders of Allotment Letters and/or cancellation deeds (flat-buyers of Bhagtani Riyo) wishing to seek refund under the court’s protection. This list is to be given before Monday (18th September) to the advocate representing the Bhagtanis, to enable the advocate to revert with a time-bound plan for repaying them. "Don't repay with PDCs (post dated cheques) that bounce, repay with regular cheques," Justice Revati Mohite Dere warned repeatedly. Reacting to the protestations of Bhagtani builder's advocate that many buyers wanted flats and not repayment, the lady judge shot back, "That doesn't mean the people who want repayment should be deprived!".

The intervenors' advocates were at pains to point out the hollowness of Bhagtanis' assurances given at the previous hearing held on 1st September, 2017. They mentioned that Bhagtanis' promises to refund were not honoured in the past, and that clauses 11 and 12 in the allotment letters did not provide any time limit for refund, enabling the Bhagtanis to postpone repayments indefinitely. 

The judge directed Bhagtanis' advocate to come prepared next Friday (22nd September) to give a specific schedule for repaying all the complainants and intervenors. With this direction, yesterday's hearing was "rolled over" to next Friday. (So far, no written orders were uploaded.) 

Background & Explanations

Hundreds of flat-buyers have paid between Rs 7 lakhs to 50 lakhs each, towards one or two flats in Bhagtani Riyo 1 and Riyo 2 projects in Mira Road. A couple of dozen aggrieved flat-buyers filed a complaint at Santacruz Police Station and so an FIR (CR no. 399 of 2017) was registered for cheating under IPC section 420 (cheating and dishonestly inducing delivery of property) read with section 34 (Acts done by several persons in furtherance of common intention).

On 23rd August, 2017, Justice Revati Mohite Dere granted anticipatory till 28th August to Dipesh Bhagtani because he said that "there is Ganpati in his house". On 1^st Sept 2017, Dipesh, Mukesh and Lakshman Bhagtani got interim protection from arrest. However, the 1st September order recorded certain submissions cum assurances made by the applicants, which are (a) that the Bhagtanis have settled the dispute with the complainants and have returned the entire amount (b) with respect to a score of investors whose names are mentioned in the interim bail application, the applicants are ready and willing to honour their commitment in terms of clauses 11 and 12 of the allotment letter. (c) With respect to other flat purchasers (apart from the above-mentioned), the applicants are ready to honour their commitment in terms of clauses 11 and 12. 

The matter was then placed on 15^th Sept. 2017 (today) for compliance of terms and conditions. On the matter being called out, the court was addressed by not just the applicants and the additional public prosecutor, but also advocates representing a number of intervenors who were praying for protection of their interests.  Taking into consideration the grievances of the intervenors, the judge directed the advocate of the complainants to refund the amounts. She insisted on knowing within what time frame the refund would happen, to which the builder's advocate sought time to ascertain the number of investors and the total amount of dues. The court further specified that the said amounts would not be refunded by PDCs, as they had been dishonoured multiple times in the past. Further directions were given to the advocates of the intervenors to submit a list of intervenors, and the amounts owed to them, on Monday, 18^th Sept, 2017.

The judge said that the same relief was also extended to the flat-buyers have signed the Cancellation Deed and surrendered their Allotment letters. 

This direction has give a huge ray of hope to hundreds of Bhagtani Riyo project, because there is a substantial chance that they will get their money back within a limited time frame that is required to be promised by the Bhagtanis to the High Court. The present application was rolled over for a hearing on next Friday, Sept 22^nd, 2017. The Bhagtanis will be required to submit a specific date for the payment to the list of investors furnished to Bhagtani’s counsel on Monday, 18^th Sept, 2017.

What this means for other project investors

Aggrieved flat purchasers in Bhagtani Savannah, Sapphire and other non-starter real estate projects are now flocking to Santacruz Police Station to lodge their complaint. A precedent has been set by this present FIR, which can be followed by others to get quick relief! It appears that the sad story of Bhagtani investors may have a happy ending after all!

ISSUED IN PUBLIC INTEREST BY

Krishnaraj Rao

9821588114

krish.kkphoto@gmail.com

Note: This is the factual account of the proceedings of Bhagtani's Anticipatory Bail Application at courtroom no. 19 at 5 pm today, where I was present along with many Riyo flat purchasers and the advocate representing them. If you are an aggrieved investor in Bhagtani Riyo, you may call me for getting your name included in the High Court list. Act fast to avoid disappointment. -- Krish