Archive · 1 Jun 2025
Court Rules Against Adding Property Buyers as Accused in Investment Fraud Case
Imagine some people were running a scam, taking money from investors and promising big returns.
When the authorities investigated, they found some people who bought a property from the alleged scammers.
Now, the court had to decide if these property buyers were part of the scam too.
The court said, since the buyers weren't running the scam or managing the companies, they couldn't be held responsible.
The buyers had simply paid money to the victims, as directed by the original alleged scammers.
This decision means the property buyers will not be charged as part of the fraud case, while the investigation of the actual scammers continues.
An MPID court ruled against adding property purchasers as accused in an investment fraud case.
The purchasers bought a property for Rs 2.6 crore from the accused.
The court stated that the purchasers, not involved in managing the fraudulent firms, couldn't be added as accused.
The property sale was related to a fraud case involving investments totaling around Rs 22.37 crore from 42 investors.
The purchasers used the sale proceeds to repay investors, as instructed by the original sellers.
- Who
- The MPID court, the property purchasers Jitendra Shah and Kirti Shah, and the original accused in the fraud case—Amit Masalia, Prakash Masalia, Dina Masalia, Payal Masalia, and Mayank Doshi.
- What
- The court ruled against adding property purchasers as accused in an investment fraud case.
- When
- The ruling was made recently in an investment fraud case.
- Where
- Mumbai, in a special MPID court.
- Why
- To determine if property purchasers could be added as accused in the investment fraud case.
Investor's Perspective
Property Purchasers' Perspective
Legitimacy of Property Sale
Investor's Perspective
Property sale was a fraudulent transfer to circumvent asset attachment.
Property Purchasers' Perspective
Property purchasers legitimately bought the property and fulfilled payment obligations by settling debts as instructed.
- Fraudulent Firms
- Cosmo Investment and Athena Investment
- Total Investment by Victims
- Rs 22.37 crore
- Number of Investors Defrauded
- 42
- Property Sale Price Paid to Investors
- Rs 2.6 crore
- Case Filed Under Act
- 2018
- Property Location
- Andheri West