Siroya FM Constructions are ordered to deposit Rs 4.25 crore within 4 weeks – Bombay High Court.

By Abhay Shah, Realty Quarter

The High Court of Bombay ordered developers, Fatesh Mirchandani and Shrenik Siroya, director of Siroya FM Constructions based in Goregaon, to deposit Rs 4.25 crore in 4 weeks and to divulge the assets of the company within 3 weeks. In association with the reinstatement of his investment of Rs 4.25 crore for an apartment in an Orchids building in Vile Parle, the justice KR Shriram was hearing a lawsuit from Bristol-based homebuyer Sunil Anand.

Following Anand’s complaint, lodged through his lawyer Anil Shah, authorities had recorded an initial data report subject to IPC sections 409 (criminal breach of trust) and 120(B) (Punishment of the Criminal Conspiracy), in addition to the Maharashtra Ownership Flats Act (MOFA). The two developers passed on for anticipatory bail, and the high court denied their application in July 2018, but they were not arrested until May 2019 by Economic Offences Wing (EOW). Today’s EOW custody includes Mirchandani and Siroya.

Anand also lodged an application to seek Rs 22 crore including Rs 4.25 crore investment with interest and Rs 12 crore as damages. The court said this was a case in which an order was ensured before a decision even in the interim stage because the Mirchandani and Siroya can be held responsible for the liabilities of Siroya FM Constructions. The court granted a temporary relief by directing both developers within four weeks to deposit Rs 4.25 crore and disclose all of their company’s assets. The Court also issued an order against the establishment of third-party privileges to any of its property with a scheduled hearing of August 2.