New Delhi [India], November 1 : The Rouse Avenue court has recently overturned a magistrate court's order discharging former Bharatiya Janata Party (BJP) MP and Indian Cricket Coach Gautam Gambhir in a case involving alleged cheating of home buyers by real estate companies. The amount involved in the alleged fraud is Rs 3.5 crore, with accusations that Gambhir was the brand ambassador of the project.
Special Judge Vishal Gogne set aside the discharge order initially passed by the Additional Chief Metropolitan Magistrate on 10 December 2020.
The court stated that the allegedly defrauded amount of Rs 3.5 crore, collected as booking fees from investors, might need to be investigated as "proceeds of crime" if it resulted from criminal activities by any of the accused (whether charged or discharged). Furthermore, any of the accused involved in actions connected to these potential "proceeds of crime," such as concealment, possession, or acquisition, might be investigated in relation to "money laundering."
The Special Court has sent the case back to the Additional Chief Judicial Magistrate, instructing a detailed new order on the charges, specifying allegations against each accused, the offences or provisions involved, and the relevant evidence cited by the prosecution in the chargesheet.
The original discharge order also involved other accused individuals, including Gautam Gambhir, Ashok Kumar Makkar, Rahul Chamola, Rakesh Kumar, Kuldeep Singh Wadhawan, and Romy Pawan Mehra.
These individuals were previously included by the Investigating Officer in column no. 12 (not charged) of the chargesheet but had been summoned by the trial court.
The ACMM found a prima facie case under Section 420 read with Section 34 of the IPC against accused Mukesh Khurana, Babita Khurana, and Gautam Mehra. A prima facie case was also established under Section 420 IPC against two companies, M/S Rudra Buildwell Realty Pvt. Ltd and M/S H R Infracity Pvt Ltd.
"However, before a fresh hearing on the matter of charges, and to avoid any uninformed or unfounded conclusions, the Trial Court shall consider directions for further investigation in light of the observations made in this order and the broad powers outlined in Vinubhai and Hemendhra Reddy," ordered Special Judge Vishal Gogne on 29 October.
The Special Court noted, "Interestingly, cheating (Section 420 IPC) is a scheduled offence under the Prevention of Money Laundering Act, 2002 (PMLA). Any property derived from criminal activity related to a scheduled offence would qualify as 'proceeds of crime' as defined under Section 2 (u) of PMLA."
"A person involved in activities connected to the 'proceeds of crime', including its concealment, possession, or acquisition, would be liable for prosecution for 'money laundering', as defined under Section 3 and punishable under Section 4 of the PMLA," the court stated.
Upon enquiry from the Court, the Investigating Officer admitted that the allegations had neither been investigated for potential money laundering nor had information regarding the funds in question been shared with any other agency investigating money laundering.
In this Court's assessment, the current FIR investigation was inadequate and failed to share relevant information with other agencies. Recognising these glaring omissions, the Court cannot abdicate responsibility for issuing appropriate directions.
Complainant S K Shukla and 16 others filed a complaint on 20 May 2015 with the DCP, Economic Offence Wing, Crime Branch, Delhi Police, seeking a complaint against three companies: M/S Rudra Buildwell Realty Pvt. Ltd, M/S H R Infracity Pvt Ltd, and M/S U M Architectures and Contractors Ltd.
The complaint also named a fourth accused, Gautam Gambhir, listed as Director and Brand Ambassador.
The complainants alleged that these companies were in the real estate business and had collectively promoted and advertised an upcoming housing project named 'Serra Bella' in July/August 2011, later renamed 'Pavo Real' in 2013.
The project, located at Indirapuram, Ghaziabad, UP, was promoted through various media, including print.
It was alleged that Gautam Gambhir, as the project's Brand Ambassador, attracted and invited buyers.
The complainants reportedly invested in the project based on these promotions and brochures, booking flats and paying sums typically between Rs 6 lakh and Rs 16 lakh for various units.
Concerns of criminality emerged when the complainants learned that the housing project site was entangled in litigation, with the Allahabad High Court having issued a stay order on the land's possession in 2003.
The complaint further alleged that any business activity or transactions on the land in question was explicitly prohibited by a court order dated 22 September 2014.