New Delhi, 10 June 2019: Mumbai Police has filed an FIR and started criminal investigations under stringent sections of the IPC against a Delhi based developer M2K and it’s President Mr. Vikas Bhagchandka, for making extortion demands of Rs. 570 Cr from a Mumbai Based Developer. M2K Group had already lost its case under RERA.
This extortion attempt from The Shreeniwas Cotton Mills limited was made after M2K lost its appeal to MahaRERA and vide an order dated 30-Apr-2019 MahaRERA asked them to take peaceful possessions of their Apartments, which they had booked in 2012 and were available with OC upon payment of their outstanding dues.
In their RERA complaint and the extortion demands- several allegations were made on the building heights, which upon verification by Mumbai International Airport Ltd. (AAI-GVK JV) under orders from MahaRERA were found to be fully compliant. After getting this compliance report from the competent authority, M2K group alleged that MIAL is incompetent (sic) and then alleged that MahaRERA has shown favour to the Developer.
M2K group has been known to mis-lead home buyers have several RERA complaints pending in Gurgaon. They were recently in the news for selling their Gurgaon Project to NRIs without informing them that a high tension line was passing through the development.
M2K’s partners and family members, who are involved in the investment are linked or under Govt. investigation for fund diversion – Ruchi Soya (Rs. 10,000 Cr wilful defaulter, Rs. 7500 Cr siphoned off), Rosmerta Group (owners under action by various Govt agencies for fraud, IPL betting)etc.
Rosemerta HSRP Ventures Private Limited has been alleged to be involved in number plate scam to the tune of Rs.400 crores. The news reports also state that Rosemerta HSRP Ventures Limited was accused of illegalities of not only in execution of the projects but also overcharging and using substandard material. Another newspaper report indicates that Rosemerta Technologies Limited has been alleged by the Government of Karnataka to have committed several illegalities and irregularities in the matter of implementation of High Security Registration Plates. Vivek Nagpal, who is stated to control Rosemerta Technologies Limited, has been named as an accused in the FIR registered by the CBI and has been debarred by SEBI in 2007 to access capital markets for a period of 5 years. Rosemerta Technologies Limited has been alleged to have submitted fake bank guarantee worth Rs.5 Cores to the Government of Maharashtra for obtaining the contract for issuing smart RC Books and for which an FIR has been lodged with Kherwadi, Mumbai Police Station.
Masked as HNI customers these rogue investors tried using para- legal means to threaten & extort money. It appears that after the bankruptcy of Ruchi Soya and investigations into Rosmerta these persons are in financial distress and were using all means to make money.