Mumbai: The special PMLA court on Thursday remanded builder Vijay Machinder of Ornate Space, arrested by the Enforcement Directorate (ED) in a money laundering, to ED custody till January 12.
Finding the need for custodial interrogation to trace the beneficiary of the money, special judge MG Deshpande said, “The offence of money laundering is serious. Huge public money is generally involved in such offences and in the instance case the same is ₹734 crore. The ED has not only to trace out the trail of said money, but also find out the end-use of thereof."
Machinder was arrested on Wednesday night for cheating several investigators, flat buyers and financial institutions with regards to the building Grove Tower, located adjacent to Oshiwara police station. After his arrest, Machinder was produced before the court on Thursday morning.
While seeking his custody for questioning, the ED said, “Since 2012, Vijay Machinder induced common flat buyers for purchase of flats in the project of Grove Tower on assurance of completion of the project in three years.”
“Machinder even issued allotment letters and registered sale deeds also. Machinder had also availed loans to the tune of approximately ₹710 crore out of which principal amount of about ₹470 crore is outstanding,” ED said.
Machinder allocated same apartment to several people: ED
The ED claimed that since 2012, Machinder defrauded flat buyers by allocating the same apartment to several people, even though the construction of the Oshiwara project had not yet commenced.
ED's investigation in 2009 revealed that United Trust of India (UTI) had a plot admeasuring 10,500 sqm at Oshiwara, Jogeshwari (W) which was to be developed for employees of UTI. The said plot was allotted to UTI by MAHDA in 1987. There were several litigations and complexities, due to which matter has gone before the Bombay High Court. Subsequently, on March 15, 2010, a tri-pary agreement was executed and registered among MHADA, UTI and M/s Ornate, according to which UTI employees of Sai Samruddhi Co-Op HSG Society would have plot admeasuring area 8,003 sqm including a disputed plot of 1,364 sqm and MAHDA has retained 2,500 sqm area.
However, the project again went into litigation when a resident raised a claim over a plot. Again in 2015, a new agreement was executed after surrendering the disputed plot and construction was to begin on the remaining plot.
