HC declares builder’s arrest in 3 cases illegal | Mumbai news

MUMBAI: The Bombay high court has ruled that city-based builder Lalit Shyam Tekchandani was arrested illegally in three cases in violation of his fundamental rights as he was not provided with the grounds for his arrest. Though the court has declared the arrests ‘null and void’ and directed his release, the builder will remain behind bars as he has not secured bail in a fourth case initiated by the Enforcement Directorate (ED).

Tekchandani, director of M/s Supreme Construction and Developers Pvt Ltd, is accused of cheating and criminal breach of trust for duping approximately 1,700 flat buyers at a residential project in Rohinjan village in Navi Mumbai. Work on the project came to a grinding halt after the foundational stage and none of the flat buyers received possession of their apartments despite paying considerable amounts of money. Instead, the builder mortgaged several flats to secure a loan of ₹26.50 crore, thereby defrauding flat buyers of ₹19.18 crore, they alleged.

Three separate criminal cases were registered by police against Tekchandani based on complaints from flat buyers and the builder was booked under various sections of the Indian Penal Code, the Maharashtra Ownership Flats Act (MOFA) and the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act. He was first arrested on January 30 this year in connection with one case in which the Economic Offences Wing (EOW) filed a chargesheet on April 25. He was taken into custody in connection with the other two cases on February 21 and April 12.

Meanwhile, the ED also initiated a fourth case against him for alleged money laundering, for which he was taken into custody on March 18.

Tekchandani approached the court claiming his arrests in the first three cases were illegal and in gross violation of his fundamental rights under Article 21 and Article 22 of the Constitution as the ‘grounds of arrest’ were not furnished to him. Advocate Taraq Sayed, representing the builder, contended that his repeated arrests in different cases were meant only to harass him.

Public prosecutor Hiten Venegaonkar submitted that Tekchandani’s arrests were vital for further investigation pertaining to the fraudulent activities. He also said he was intimated about the grounds of arrest verbally but not in writing.

The division bench of justices Bharati Dangre and Manjusha Deshpande clarified in the order dated December 13 that an accused is allowed to move a bail application in case he is booked under fresh offences. The court also highlighted procedural lapses as the police had failed to inform him regarding the grounds of arrest in all three cases.

“He is entitled to know the grounds of his arrest,” the court said, pronouncing the arrests ‘null and void’ and directing his release.