HC cancels bail of real estate developer for duping investors

The court pointed out that Sharma sold the land purchased with the investors’ money for personal gains.

“The conduct of the respondent (Sharma) right from inception clearly establishes that his intention was always to dupe innocent investors by making false claims without having legal authority or requirement for development of township.

“Notwithstanding the fact that he was already on bail,he proceeded to dispose of the land purchased with the amount given by investors and used the proceeds of the same for his personal gain and did not repay even a single investor,” Justice Mehta said.

The bench passed the order on a plea by the Delhi Police for cancellation of Sharma’s bail.

Investigations had revealed that Sharma had allegedly received close to Rs 13 crore from more than 600 investors for developing a township project in Dadri,near National Highway-91,called Boutanika City.

However,records of the Housing Commissioner and Chief Town and Country Planner,Lucknow revealed that Boutanika Infrastructure Pvt Ltd was not issued registration for development of a township.

During his trial,Sharma had sought release of the sale deeds of the land he had bought with the investors money so that he can sell them (land) to refund their investment.

On directions of the High Court,the trial court had granted his plea with the direction that the money he gets from selling the land should be deposited with the court within 15 days of sale.

The bench pointed out that Sharma “abused the indulgence that was given to him by this court from time to time” and “diverted the sale proceeds to his other business activities.”

It said Sharma received more than Rs four crore by sale transactions but he did not deposit the same with trial court.

The bench also observed that his conduct during the entire trial was evasive and dishonest as he never disclosed the details regarding his assets completely.