ALPESH NAVINCHANDRA GOSALIA Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) The petitioner seeks a direction to the State of Maharashtra, Union of India, Serious Fraud Investigation Office, Securities and Exchange Board of India, Reserve Bank of India, Commissioner of Police, Mumbai, Senior Inspector of Police, Enforcement Directorate, Central Bureau of Investigation and Economic Offences Wing, Mumbai to register a First Information Report/ECIR or to institute other appropriate proceedings for an independent expeditious, effective and meaningful investigation into the various crimes committed by the respondent nos.11 to 25 and 28 to 46 and their accomplices and agents under Sec. 406, 409, 420, 421, 120-A read with Sec. 34 of the Indian Penal Code, 1860, Prevention of Money Laundering Act, 2002, Prevention of Corruption Act, 1988 and Foreign Exchange Management Act, 1999. He seeks a further direction to the SEBI, RBI and other government Agency to take appropriate action for preventing further fraud and siphoning off public money. He has made a specific prayer for causing an investigation against 25th respondent-Bhagvanji Raiyani who instituted a Public Interest Litigation through "Janhit Manch" for illegal and unlawful gains and extortion.

(2.) The petitioner who states that he is engaged in the business of iron and steel trading for 33 years seeks enforcement of his rights to bring to book the accused persons who, according to him, were involved in enormous financial frauds causing severe financial loss and injury to him and others. He makes specific allegations against Indiabulls Housing Finance Ltd., Honest Shelters Pvt. Ltd., Ashdan Developers Pvt. Ltd. and 31 other Corporate entities and individuals who floated shell companies, laundered money and filed a Public Interest Litigation to extort money. The petitioner states that a residential project "Palais Royale" was launched by 26th respondent-Shree Ram Urban Infrastructure Ltd. (in short, "SRUIL") with an estimated cost of Rs.10,000.00 crores. The petitioner and his companies, namely, A. Navinchandra Steel Ltd. and Akai Steels Ltd. were major suppliers of steel to the SRUIL which had certain disputes with a real estate competitor. The respondent no.25 filed Public Interest Litigation No.43 of 2012 alleging violations of the building rules by the SRUIL. The order passed in the said PIL was challenged before the Hon'ble Supreme Court and the said PIL was dismissed on 24/10/2019. But, in the meantime, the Project was stalled due to the stoppage of work direction issued by the Bombay Municipal Corporation. As a consequence thereof, the SRUIL suffered financial difficulties and committed defaults in payment of Rs.30.00 crores to the petitioner's company for supply of steel. The petitioner's company instituted Summary Suit No.626 of 2014 which was decreed in its favour by a judgment delivered on 7/10/2015. However, the petitioner's company suffered handicaps in executing the decree dtd. 7/10/2015 on account of a series of orders passed in Company Petition No.1066 of 2015 which was filed by the respondent no.17-Action Barter Private Limited. The petitioner makes allegations against the respondent no.13-Atul Chordia, the respondent no.38-Himanshu Lohia and the respondent no.24-Avi Agarwal who, according to him, are financial mafias and operate under the facade of the Indiabulls Housing Finance Ltd. These individuals and the Corporate entities are responsible for ruining the SRUIL through Janhit Manch and floated the Honest Shelters Pvt. Ltd., a shell company, which was registered in 2014. The petitioner states that this shell company had share capital of Rs.1,00,000.00, revenue generated by it was zero, other incomes were zero and its total expenses was Rs.59,779.00 as on 31/3/2019. Surprisingly, 16th respondent-Honest Shelters Pvt. Ltd. acquired the "Palais Royale" apartments in an auction conducted under the SARFAESI Act in July 2019. The petitioner claims that the Indiabulls Housing Finance Ltd. which is the synonym for fraud and forgery provided more than Rs.7,000.00 crores to the Atul Chordia Group of company out of which about Rs.800.00 crores was used to enable the Honest Shelters Pvt. Ltd. to acquire the Project.

(3.) The Indiabulls Housing Finance Ltd. has filed its affidavit in opposition raising a question on maintainability of this writ petition. The respondent no.16 has challenged the locus-standi of the petitioner. It is stated that the present writ petition is an egregious instance of forum shopping. The petitioner cannot invoke the jurisdiction of this Court under Article 226 of the Constitution of India to seek such reliefs which cannot be grantedin view of the orders passed by the Debts Recovery Tribunal, National Company Law Tribunal and Hon'ble Supreme Court. The respondent no.16 has labeled the petitioner as a habitual litigant who filed multiple proceedings in various forums with respect to the same cause of action. The respondent no.16 has stated that the petitioner filed at least two securitization applications before the Debts Recovery Tribunal-II at Mumbai against the respondent nos.15 and 16. The petitioner's company filed Review Application (L) No.18534 of 2022 seeking review of the order dtd. 2/5/2022 by which the Official Liquidator was directed to handover the keys of the public parking to the MCGM and the said review application has been dismissed. The order dtd. 23/10/2024 dismissing the said review petition was challenged in Special Leave Petition (C) Diary No.40573 of 2025 and the same was dismissed by the Hon'ble Supreme Court on 22/8/2025. The petitioner's company filed several other applications, such as, Interim Application No.13060 of 2021, Review Application (L) No.18549 of 2022 etc. which are pending for final disposal. It is stated that the petitioner has filed its claim before the Resolution Professional which was appointed pursuant to the order dtd. 6/11/2019 passed by the NCLT initiating the Corporate Insolvency Resolution Process of the SRUIL. The claim of Rs.17.22 crores has been admitted by the Resolution Professional for the petitioner who raised a claim of Rs.32.18 crores as an Operational Creditor.