2 weeks ago
Court Quashes Criminal Case Against Aavas Financiers Over Demolished Flat
A long time ago, a man bought a flat in a place called Mira Road.
He got a loan from a finance company called Aavas Financiers to help pay for it.
The finance company gave some of the loan money directly to the builder.
Later, the city said the building was illegal and tore it down.
The man was very upset and said the finance company cheated him.
He asked a lower court to start a criminal case against the company.
The lower court agreed and ordered a case.
The finance company asked a higher court to look at the decision again.
The higher court judge read everything carefully and found no proof that the company did anything wrong.
The judge said starting a criminal case is a serious matter, so he cancelled the case against the company.
The Thane Additional Sessions Court set aside a Magistrate's order that had issued criminal process against Aavas Financiers Ltd.
The dispute concerned a flat in Mira Road that was demolished by civic authorities after being declared illegal.
The complainant bought the flat from Samarth Builders & Developers for Rs 8.12 lakh under a registered agreement dated July 30, 2014, and took a housing loan from Aavas Financiers.
The court noted Aavas Financiers disbursed Rs 2,53,750 to the builder, received no wrongful gain, and no nexus between the builder and the financier was alleged.
Judge R.S. Bhakare held there was no prima facie material for offences under Sections 406 and 420 read with Section 34 of the IPC and allowed the revision application.
- Who
- Additional Sessions Judge R.S. Bhakare of the Thane court, Aavas Financiers Ltd, the complainant, and Samarth Builders & Developers.
- What
- The Thane Additional Sessions Court quashed criminal proceedings against Aavas Financiers in a case involving a Mira Road flat that was demolished as illegal.
- Where
- Thane Additional Sessions Court; the property was located in Mira Road.
- When
- The judgment was reported on August 12, 2026; the flat agreement was dated July 30, 2014; the JMFC order of March 1, 2021 was set aside.
- Why
- The court found no prima facie material against the finance company, as there was no alleged nexus with the builder and no wrongful gain to the company.
Key facts
- Court
- Thane Additional Sessions Court
- Judge
- Additional Sessions Judge R.S. Bhakare
- Finance Company
- Aavas Financiers Ltd, Borivali-based
- Builder
- Samarth Builders & Developers
- Property
- Flat in Mira Road, demolished as illegal by civic authorities
- Agreement & Price
- Registered agreement dated July 30, 2014 for Rs 8.12 lakh
- Loan Disbursed to Builder
- Rs 2,53,750
- Offences & Order Set Aside
- Sections 406 and 420 read with Section 34 of the IPC; JMFC order of March 1, 2021
Quotes
Additional Sessions Judge R.S. Bhakare
Judge presiding over the Thane Additional Sessions Court case
“"It appears that the present applicant is a financial institution and has given a housing loan to the complainant. Even the complainant has repaid a certain amount in equated monthly instalments up to June 10, 2019. It appears that the applicant has not received wrongful gain. On the contrary, there is wrongful loss of an amount of Rs 2,53,750, which they have transferred to the builder. Further, there is no averment in the complaint that there was nexus between the builder and the financial-in”
freepressjournal.in
Sources
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