MUMBAI: Goregaon police have registered a first information report (FIR) against Wadhwa Group for allegedly cheating developer Policon Realtors of Rs 57 crore.
The FIR alleged that Wadhwa Group directors, including Navin Makhija, failed to honour financial commitments made in the agreement despite receiving additional floor space index (FSI) and funds as part of a settlement deal.
The case has been transferred to the Economic Offences Wing (EOW).
In 2003, Policon Realtors won a tender for redeveloping Unnat Nagar Akshaya Cooperative Housing Society in Goregaon (W). The project was to be completed within 42 months, and a commencement certificate was issued on Oct 18, 2005. The project involved construction of five towers, each with 68 flats. However, only 14 floors were constructed in one tower. The work got stalled as residents refused to vacate. Further complications arose when Mhada changed the rules leading to a stay order on construction.
In 2009, Polycon Realtors brought in Wadhwa Group, which committed to pay Rs 5 crore and allocate 18% of the total saleable flat area to the developer, as well as complete the project within 36 months, the FIR stated. Wadhwa Group initially paid Rs 2.5 crore, but did not commence construction, citing repeated FSI adjustments by Mhada.
Another supplementary development agreement was signed in 2013, increasing the carpet area allotment to 1,050 sq ft per member. After this agreement, Polycon Realtors demanded the pending Rs 2.5 crore, but Wadhwa Group refused payment, claiming the contract terms were unacceptable. Wadhwa Group failed to meet the deadline, the FIR said. The companies approached Bombay high court which appointed retired Justice D K Deshmukh as arbitrator. Wadhwa Group failed to honour the settlement terms agreed upon by the arbitrator, the FIR added.
