A ₹600-crore financial fraud case involving Mumbai-based Ecstasy Realty, a sessions court in Mumbai has rejected the anticipatory bail pleas of four directors of the company. The court observed that custodial interrogation of the accused was necessary given the magnitude of the alleged scam and ongoing investigations.
The four directors—Jayesh Patel, Manoj Mehta, Rohit Kumar, and Anil Desai—stand accused of defrauding hundreds of homebuyers and investors under the pretext of real estate development in Mumbai and its suburbs.
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Fraud Uncovered Through Investor Complaints
The case came to light after multiple FIRs were lodged by aggrieved investors alleging that Ecstasy Realty had collected substantial sums from them for pre-launch or under-construction real estate projects but failed to deliver possession or initiate development. According to the Economic Offences Wing (EOW) of Mumbai Police, the accused siphoned off funds by diverting them to shell companies and unrelated ventures, causing massive losses to individual investors.
Court documents indicate that the financial trail showed a deliberate attempt to misappropriate investor money, with forged documents, inflated construction estimates, and fake project plans presented to regulatory bodies and buyers.
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Custodial Interrogation Essential: Court
In its ruling, the Mumbai sessions court stated that pre-arrest bail could hamper the collection of vital financial evidence and digital records. “The nature and scale of the offence demand thorough custodial interrogation. The accused appear to have engaged in a coordinated effort to defraud numerous individuals,” the court order noted.
The directors, who were absconding for some time, had approached the court citing cooperation with the investigation and lack of criminal history. However, the prosecution countered that the accused had been uncooperative and untraceable, undermining the credibility of their claims.
Investigations are being conducted under relevant sections of the Indian Penal Code, including cheating (Section 420), criminal breach of trust (Section 406), and criminal conspiracy (Section 120B), along with provisions of the Maharashtra Protection of Interest of Depositors (MPID) Act.
About the Author – Anirudh Mittal is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.