Punjab & Haryana High Court restrains Rohtak judges from hearing bail pleas in real estate fraud case

The Punjab and Haryana High Court recently restrained judges posted in Rohtak from dealing with bail petitions arising out a criminal case accusing DHL Infratech Pvt Limited and Gupta Property Developers of cheating various homebuyers who had invested in their resident project 'DHL New Town' [Subhash Gupta v State of Haryana].

Justice NS Shekhawat passed the order after noting that various accused, particularly the directors of DHL Infratech, were granted bail by the trial court in Rohtak despite their alleged involvement in other scams.

The Court added that certain other facts have also been brought to its notice but it declined to disclose the same. It would not be appropriate to highlight those facts in a judicial order, the judge said.

"The judicial officers posted at Sessions Division, Rohtak, are restrained from entertaining any bail applications in the present case," the Court ordered on September 30.

The Court passed the order while hearing an anticipatory bail plea moved by Subhash Gupta, who is a director of Gupta Property Developers Limited.

It is alleged that DHL and Gupta Property Developers induced various purchasers to invest in the residential project 'DHL New Town', Sector-27A, Rohtak, by making false representations regarding approvals, timely possession and execution of sale documents.

Despite receiving the consideration, neither possession of the residential unit was delivered nor was any sale deed executed, the complainants alleged. A preliminary investigation revealed that an amount of about ₹11.69 crore relating to at least 30 purchasers was involved in the case.

During the hearing of Gupta's plea, the High Court in August observed that every attempt was made by the police to shield the real culprits who had cheated a large number of innocent investors of crores of rupees.

In the latest order, the Court flagged that real estate developers collect crores of rupees from innocent public by showing them a rosy picture of offering accommodation on time, but later on they are neither provided the accommodation nor is the money invested by them returned.

The Court added that even the real estate developers or promoters in such cases are aware that it is not possible to complete the project in line with the promises made by them to investors. Crores of rupees invested by these innocent buyers are siphoned off this way, the Court noted.

"Apart from that, the conduct of such developers demonstrates a repeated pattern of fraudulent transactions. Even such systematic frauds are projected as isolated disputes arising out of contractual relationship, but when the Courts examine such disputes, it is found that such disputes form part of larger conspiracy to cheat the innocent buyers of their earning of whole life," the Court further said.

In the present case, the Court opined that the investigating officer appeared to be trying to help the accused. The Bench added that even after the passing of various orders by the Court, the investigation was not conducted properly.

"It is apparent that the police officials posted at Rohtak are hesitating in taking action against real estate promoters/developers, and even after four months of registration of the FIR, no action has been taken against them," the Court said.

Consequently, the Court said it expects the Haryana government to appoint a senior IPS officer to investigate the scam and to submit a status report of the investigation on or before the next date of hearing.

The matter will be heard next on October 28.

Advocates Dinesh Arora, Jatin Sehra and Ashish Khatkar represented the petitioner (Subhash Gupta).

Senior Deputy Advocate General Rajiv Sidhu represented the State.

Advocate RS Dhull represented the complainant.

[Read Order]