New Delhi: The Allahabad High Court has transferred the investigation into an alleged ₹6.33 crore real estate fraud case involving former Member of Legislative Council (MLC) Haji Iqbal alias Bala from the Uttar Pradesh Special Task Force (UP STF) to the Serious Fraud Investigation Office (SFIO). The court refused to quash the FIR, observing that the allegations disclosed cognisable offences and that stopping the criminal proceedings at the initial stage would leave the complainant without legal remedy.
A division bench of the High Court held that the matter required investigation by the SFIO because the allegations in the FIR appeared to be connected with a wider corporate fraud network already under examination by the central agency. The court noted that allowing separate investigations into the same corporate structure could result in duplication and fragmentation of the probe.
The case relates to a complaint filed by Naved Ahmad, who alleged that between December 2013 and March 2014, he transferred around ₹6.33 crore to M/s Enchant Infrastructure Pvt. Ltd. for development of a real estate project in Greater Noida. According to the complaint, the company failed to undertake construction work on the allotted land and also defaulted on payments due to the Greater Noida Authority.
The authority later cancelled the allotment of the plot in August 2022 after outstanding dues reportedly reached around ₹29 crore, against which only about ₹4.5 crore had been deposited. The complainant alleged that he suffered financial loss due to the failure of the company and the alleged actions of those controlling the corporate entities.
During the hearing, the court considered the fact that the SFIO was already investigating a broader alleged fraud involving Haji Iqbal and several shell companies. The agency had earlier filed a complaint before the Special Court in Dwarka, New Delhi, after completing its investigation into the corporate network.
The SFIO probe was initiated following directions issued by the Supreme Court in a matter concerning alleged financial irregularities and the functioning of shell companies linked to the group. The central agency’s complaint reportedly identified Haji Iqbal as the alleged key person controlling the operations of the network.
According to the SFIO findings cited before the court, around ₹610.30 crore was allegedly routed through 84 accused entities. These companies were allegedly used for acquiring land, real estate properties and sugar mills, while funds were also allegedly transferred to organisations linked to Haji Iqbal.
The court observed that M/s Enchant Infrastructure Pvt. Ltd., the company named in the ₹6.33 crore fraud FIR, was also an accused entity in the SFIO complaint. It noted that both proceedings involved similar companies, similar allegations and an overlapping method of operation.
Haji Iqbal had approached the High Court seeking cancellation of the FIR, arguing that the allegations were already covered in the SFIO investigation and that the UP STF was conducting an impermissible parallel inquiry. His counsel argued that he had no direct role in the company’s operations and that the transactions mentioned in the FIR were carried out between the complainant and the company’s authorised representative.
The state government opposed the plea, arguing that the accused was allegedly involved in a large-scale financial crime network and that the SFIO investigation and the FIR represented different aspects of the alleged wrongdoing.
The High Court referred to provisions of the Companies Act, 2013, and observed that once a matter is assigned to the SFIO, other agencies should not continue parallel investigations into the same corporate affairs. The court clarified that SFIO’s jurisdiction is not limited only to violations under company law but can also cover other criminal offences arising from the transactions under investigation.
However, the bench also noted that the SFIO complaint had not specifically examined the transaction involving the complainant’s plot. To protect the victim’s right to seek justice and avoid fragmented investigations, the court decided to transfer the STF probe to the SFIO.
The court directed the UP STF to hand over all case records, investigation diaries and seized material to the SFIO. The central agency has been asked to treat the complaint as further investigation under the Bharatiya Nagarik Suraksha Sanhita (BNSS) and submit a supplementary report before the Special Court in New Delhi if required.
The order is expected to strengthen the investigation into the alleged financial network and ensure that all connected transactions, companies and individuals are examined under a single coordinated probe.
