The Economic Offences Wing (EOW) of Mumbai police has chargesheeted builder Chandru Raheja and his sons Ravi and Neel on a complaint filed by industrialist Nusli Wadia. The builders, who control K Raheja Group, had entered into joint venture with Wadia’s properties in Malad West in 1995 for development of the area.
The current market value of the land is estimated to be more than Rs 30,000 crore. The chargesheet was filed on Tuesday and the Sessions Court had granted anticipatory bail to the Rahejas.
The tycoons got into litigation after Wadia complained to authorities against Rahejas for violating the terms of the joint venture signed by them in 1995. As per the agreement, Raheja’s has to build a building complex called Ivory Tower and share the revenue with Wadia. But according to the complaint, Raheja’s never built the said complex and “fraudulently constructed another Mall in another companies name and diverted the sale proceeds.”
“The redeveloped properties were to be sold in the market and a portion of the revenue was to be credited to Wadia. But the Rahejas allegedly sold it at lesser price through benami companies, causing a loss to Wadia,” said Mumbai Police’s EOW wing in the chargesheet.
A Raheja spokesperson said the complaint against the group was for causing a loss of Rs 4 crore to Wadia, “whereas the landowner is holding aggregate amount of Rs 5.6 crore in excess from the developer”. Wadia raised disputes in 2005 over certain transactions. In 2008, he filed a civil suit in the HC and lodged a complaint with the EOW.
The Wadia-controlled Estate had also filed a similar complaint in 2008 against Gopal l. Raheja, Sandeep G. Raheja and Sonali Raheja of Ferani Hotels Pvt. ltd. with EOW. The FIR has been registered and is under preliminary investigation but charges are yet to be finalised against the Gopal l. Raheja and his son and daughter.