A special Mumbai court has framed charges against developer Vijay Machinder, his wife Komal Machinder and their company Ornate Spaces Pvt Ltd in an alleged ₹28 crore homebuyer and investor fraud linked to the unfinished Grove Tower project in Oshiwara.
The order clears the way for the accused to face trial over allegations that money was collected from buyers and investors from 2012 onwards with promises of flats, returns and timely possession, but the commitments were not fulfilled.
The special court dealing with cases under the Maharashtra Protection of Interest of Depositors Act has framed charges for cheating, criminal breach of trust and offences under Maharashtra’s flat-ownership and depositor-protection laws.
The allegations remain to be proved at trial.
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Buyers Were Promised Flats in Oshiwara’s Grove Tower
According to the charge-framing order reported by PTI, Ornate Spaces allegedly collected around ₹28 crore from prospective buyers and investors beginning in 2012.
The money was linked to Grove Tower, a residential development near Oshiwara Police Station in Mumbai.
The prosecution alleges that possession was promised by around 2017-18, but the flats were not handed over and the principal amounts paid by investors were not returned.
Earlier court records provide a broader picture of the project.
A 2024 Bombay High Court order records that one complainant, Rajendra Surana, had agreed to purchase 14 flats and transferred approximately ₹15.60 crore through banking channels between 2012 and 2019.
The same proceedings recorded allegations concerning substantial additional cash payments and purchases by other investors.
Court Frames Cheating and Breach of Trust Charges
The accused will face trial under Sections 420, 406 and 409 of the Indian Penal Code, read with Section 34 relating to common intention.
Section 420 concerns cheating and dishonest inducement to deliver property.
Sections 406 and 409 concern different forms of criminal breach of trust.
The court has not found the accused guilty by framing these charges. Charge framing means the judge has found sufficient material for the allegations to proceed to trial, where witnesses and documents will be tested.
Forged Society Resolution Allegedly Used for PNB Housing Loan
A separate and significant allegation concerns financing obtained for the project.
The prosecution alleges that Vijay and Komal Machinder forged a general-body meeting resolution on a housing society’s letterhead and used it to secure financing from PNB Housing Finance Ltd.
The court will now examine evidence relating to that document and the loan transaction during trial.
Earlier proceedings also show that Ornate Spaces had raised substantial financing against the project while construction remained incomplete.
A Bombay High Court order from 2024 recorded the investigating agency’s allegation that loans totalling approximately ₹710 crore had been taken, of which around ₹470 crore in principal remained outstanding at that stage.
These larger loan figures are separate from the ₹28 crore allegation now highlighted in the criminal trial.
MOFA Charges Over Agreements, Disclosures and Buyer Funds
The accused have also been charged under Section 13 of the Maharashtra Ownership Flats Act.
The allegations include failure to properly execute and register agreements for sale with purchasers.
Prosecutors have also accused the developer of failing to make required disclosures regarding title and sanctioned plans and of misusing advances collected from buyers.
MOFA imposes specific obligations on promoters when they collect money from people purchasing flats.
Those requirements are intended to prevent developers from accepting substantial payments while withholding important information or failing to formalise the buyer’s rights.
MPID Act Also Invoked
The developer, his wife and the company will additionally face charges under Sections 3 and 4 of the Maharashtra Protection of Interest of Depositors Act.
The prosecution alleges that money was obtained from flat purchasers and investors through assurances involving possession, returns and financial security before the accused allegedly defaulted on those commitments.
The MPID Act allows Maharashtra authorities to act against financial establishments accused of fraudulently defaulting on money accepted from depositors.
Its application in real-estate cases depends on the nature of the financial arrangement and the evidence in each case.
Case Began With 2021 Mumbai Police FIR
The criminal case originated with an FIR registered at Oshiwara police station in 2021 and later investigated by Mumbai Police’s Economic Offences Wing.
Contemporary reporting identified Vijay Machinder, wife Komal and son Yash among the directors booked following a complaint by an investor who said he had purchased 14 flats.
The investigation subsequently expanded into allegations involving the project’s finances, flat allotments and use of money collected from buyers.
ED Later Opened Money Laundering Investigation
The same underlying police case also led to a separate Enforcement Directorate investigation under the Prevention of Money Laundering Act.
The ED arrested Vijay Machinder in January 2024.
At that time, the agency said flat buyers had paid approximately ₹93.44 crore in advance bookings for the Oshiwara project and alleged that buyers had been defrauded to the tune of around ₹74 crore.
The ED further alleged that construction had barely progressed beyond excavation despite advances from buyers and large loans from financial institutions.
That money-laundering proceeding is distinct from the MPID court trial now moving forward.
Project Had Also Entered Insolvency
Ornate Spaces had entered insolvency proceedings before the latest criminal trial development.
Bombay High Court records say the company was admitted into the corporate insolvency resolution process in June 2020 following a loan default.
The records also show that substantial creditor and homebuyer claims were subsequently admitted during the insolvency process.
This means Grove Tower has generated proceedings across several legal forums — criminal investigation, money laundering proceedings and insolvency litigation.
Each proceeding serves a different purpose and should not be treated as a finding of guilt in the others.
Trial Will Now Test Documents and Money Trail
With charges formally framed, prosecutors can begin presenting witnesses and documentary evidence before the special court.
The trial is expected to examine payments from buyers, agreements and allotment records, project finances and the allegedly forged society resolution used in connection with the PNB Housing Finance loan.
The defence will have the opportunity to challenge the prosecution’s evidence and present its own case.
Vijay Machinder, Komal Machinder and Ornate Spaces have not been convicted in the case.
What this means for you
Before making large payments to an under-construction project, buyers should verify the project’s approvals, registered sale agreement, existing lender charges and RERA disclosures rather than relying solely on possession or return assurances. Payment receipts and all communications with the developer should be preserved if a project later enters litigation or insolvency.
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