Delhi Court says ‘Prima Facie inducement and fraud’, summons M3M Promoters in Rs.450 Crore land deal

A Delhi Court has taken cognisance of a chargesheet filed by the Economic Offences Wing (EOW) against real estate firm M3M India Pvt Ltd and its promoters, Basant Bansal, Roop Bansal and Pankaj Bansal, in a high-value land fraud dispute with MGF Developments Ltd, clearing the way for criminal proceedings in a case linked to a contested Gurugram land deal worth around Rs.450 crore.

The case stems from a 2022 FIR registered on MGF’s complaint over a land exchange arrangement in Gurugram, where MGF allegedly agreed to transfer land parcels to the M3M Group in return for alternate land and Rs.114 crore paid through post-dated cheques. According to the prosecution, the deal was conditional, with cancellation agreed upon in case of cheque dishonour.

MGF claims the cheques bounced, yet the land was still dealt with, allegedly without lawful payment or possession. The dispute, tracing back to 2016, revolves around land in Chauma village and has triggered parallel probes by the EOW, Gurugram Police and the Enforcement Directorate.

Chief Judicial Magistrate Harshita Mishra held that the material on record was sufficient to move the case forward, observing that at this stage the court is only required to assess whether a prima facie case exists. Referring to the allegations in the chargesheet, the court noted, “It prima facie appears that the accused persons induced the complainant company into entering into an agreement qua exchange of land in Gurugram and subsequently defaulted in the payment and fraudulently got the land mutated for a building project.” 

Finding grounds to proceed under Sections 406, 420, 120B and 34 of the IPC, the court summoned the accused to appear on April 4.