A Delhi court has upheld criminal proceedings against real estate developer M3M India Pvt Ltd and its promoters for cheating and criminal conspiracy in an alleged 450 crore rupee land fraud case involving approximately 31 acres in Gurugram. Principal District and Sessions Judge Anju Bajaj Chandna dismissed the revision petitions filed by the accused, permitting the case to proceed under Sections 420, 120-B, and 34 of the Indian Penal Code. The court, however, set aside the magistrate court’s order taking cognisance of criminal breach of trust under Section 406, ruling that the essential ingredients of that specific offence were not made out. The accused have been directed to appear before the Chief Judicial Magistrate on October 27, with the trial court instructed to proceed expeditiously.
Land Exchange Deal and Disputed Cheques
The legal battle stems from a complaint filed by MGF Developments Ltd, which alleged that M3M and its affiliated companies acquired rights over 31 acres of land in Chauma village, Gurugram, without tendering the agreed-upon financial consideration. According to the prosecution, the transaction was finalized in November 2016 as a land exchange agreement. Under the terms, the Chauma village land was to be traded for another parcel located in Mohammadpur Gujar village in the Sohna area, alongside a monetary settlement of 114 crore rupees.
The prosecution stated that the accused paid approximately 16.30 crore rupees upfront and handed over post-dated cheques amounting to roughly 98 crore rupees to cover the remaining balance. The chargesheet noted that although these cheques were replaced on two separate occasions, they were ultimately returned unpaid on March 28, 2018, due to stop-payment instructions. The Delhi Police Economic Offences Wing registered a First Information Report in 2022 following MGF’s complaint.
Mutation and Project Licences Despite Unpaid Balance
Investigators alleged that the accused companies proceeded to secure the mutation of portions of the disputed land in their names despite failing to clear the outstanding balance. The companies subsequently applied for commercial licences to develop residential projects on the acquired Chauma parcel. MGF asserted that repeated assurances regarding the clearance of dues were provided but never honoured, leading to the transfer of prime land rights without the receipt of the full agreed sum.
The complainant further alleged that the accused proceeded with the land deal despite lacking sufficient funds to honour the post-dated cheques. While criminal proceedings have been permitted to advance, the court clarified that the allegations remain unproven and that judicial findings do not establish guilt at this initial stage.
Defence Claims Commercial Dispute as Court Sets Next Stage
Challenging the lower court’s January 31, 2026 cognisance order, the accused contended that the matter was purely civil and stemmed entirely from contractual obligations. The defence argued that MGF lacked the legal standing to file the complaint, adding that the land exchange paperwork had been executed by separate corporate entities and that the disputed balance had subsequently been deposited before the court.
The sessions court observed that deep examination of evidence is not warranted at the stage of taking cognisance and held that arguments concerning legal standing and the civil nature of the case could be presented when the magistrate considers framing charges. Although several related civil suits remain pending between the two real estate groups, the criminal prosecution for cheating and conspiracy will continue.
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