Govandi MPID Court Orders FIR Against Builder Mishal Constructions Over Undelivered Flats
A special Maharashtra Protection of Interest of Depositors (MPID) court on Tuesday ordered the Govandi police to register FIRs against Mishal Constructions Pvt Ltd and its promoters for allegedly failing to hand over possession of flats or refund ₹4.67 crore to homebuyers in Govandi, Mumbai.
Designated judge Vikram R Jagdale rejected closure reports submitted by the police and directed action against the real estate company along with its promoters, Ajitkumar Jain and Navinkumar Jain. The court held that ongoing proceedings before the Maharashtra Real Estate Regulatory Authority (RERA) cannot prevent criminal action under the MPID Act.
The order follows complaints dating back to 2023 regarding the Maitri Vijay Co-operative Housing Society project in Govandi. According to court records, buyers Chetan Mehta and Vaishali Mehta booked two flats in October 2010 and paid ₹3 crore after being promised possession by 2016. In the second case, Latha Sidharthan and Kurupath Sidharthan booked a flat in the same society in October 2010, paying ₹1.67 crore under similar timeline assurances. Construction on the project completely stopped in 2016, leaving both families without their flats or a refund despite repeated follow-ups.
In October 2024, the special court had directed the Govandi police to conduct preliminary inquiries and register FIRs if the allegations were found to be well-founded. Instead, the police submitted ‘C’ summary reports seeking closure, citing the buyers’ pending cases before RERA. The police reasoned that restrictions under RERA prevented a criminal court from taking cognisance of the allegations unless requested by the regulatory authority or its authorised representative.
The court rejected the police’s interpretation, terming it a "totally erroneous and misconceived proposition of law." Judge Jagdale ruled that RERA and the MPID Act operate in different domains and that the MPID Act’s overriding provisions take precedence in cases of conflict with other laws. The judge stated that once allegations disclose a cognisable offence, the police are required to register an FIR and investigate, regardless of RERA proceedings.
The Govandi police have now been instructed to register the FIRs, investigate both cases, and submit their final reports to the court within one month.
