High court slams police over multi-crore housing scam

The abandoned buildings in Karrm Residency

The Bombay High Court recently expressed its frustration with the substandard police investigation into the multi-crore housing scam involving Karrm Infrastructures (Pvt) Ltd. A division bench, comprised of Justices A S Gadkari and Sharmila U Deshmukh, reprimanded the investigating police and directed the Director General of Police, State of Maharashtra, to transfer the case to a police officer with the rank of Commissioner of Police. They also ordered that the inquiry report be submitted within four weeks from the date of the written order, which was issued on October 18, with a due date of November 29.

In their written order on October 18, the justices raised serious concerns about the investigating police's inability to answer the court's questions. They remarked, "The conduct of the investigating agency speaks volumes, and with great reluctance, we have to note that the interest of accused persons is being protected more than the interest of crime victims." The court also directed one of the senior defence counsels to initiate mediation to devise a comprehensive scheme by November 9.

Prabhuram Giri, petitioner

mid-day previously published a series of articles exposing the wrongdoings of Karrm Infrastructures (Pvt) Ltd. These articles highlighted the plight of approximately 11,500 flat buyers who were caught in a mega residential housing complex scam, worth hundreds of crores. Additionally, the developer had enlisted Bollywood celebrities as brand ambassadors to attract customers.

The complaint

In a criminal writ petition filed under Article 226 of the Constitution before Bombay HC, the petitioners, 19 of them, along with numerous flat purchasers, were deceived into buying flats. These projects included Karam Residency at Dhasai village, Shahapur, Karam Panchtatva at Kasagaon, Shahpur, and Karam Brahmaand at Kelwe Road, Palghar. Notably, the developer also had an incomplete project in Ambernath.

Transfer of case

The petition sought the transfer of three criminal cases to an independent or specialised agency, as the company had promised possession of residential premises within a stipulated time frame. However, the petitioners did not receive possession or refunds of their investments, leading to their pursuit of justice for several years.

Court flummoxed

Records indicated that accused individuals received pre-arrest bail in one of the cases registered at Naupada police station, and no other arrests were made except Ketan Patel. The court expressed its bewilderment at the claim that the accused were absconding while enjoying pre-arrest bail. The court's observations highlighted the ineffectiveness and neglect of the investigating officers, emphasising that the interests of the accused seemed to be prioritised over those of the victims.

Direction to state DGP

In response, the court directed the Director General of Police, Maharashtra, to conduct a thorough inquiry into the investigation of one of the cases. This inquiry was to be carried out by a senior police officer of the IPS cadre, preferably with the rank of Commissioner of Police, and to be completed within four weeks, with the report due by November 29, 2023. The court stressed that such directions were necessary due to the lackadaisical approach of the investigating officers in handling the cases.

Additionally, the court recognised the importance of protecting the interests of the deceived flat purchasers. Senior counsel Rajeev Patil, representing some of the flat purchasers, was appointed as a mediator to resolve the issues concerning the affected flat purchasers in the mentioned projects. All advocates representing the respective flat purchasers were requested to assist Patil in reaching a solution. The court also directed the investigating agencies to take necessary steps to prevent the accused from leaving the country.

Whistle-blower speaks

One of the petitioners, Prabhuram Giri, expressed gratitude to the high court for hearing their plea and for recognising the serious lapses in police investigation. "The local authorities failed to act on complaints, indicating collusion with the accused. We are hopeful justice will be served to the innocent," he added.