EOW books film financer Yusuf Lakdawala’s stepson, daughter-in-law

EOW registers case against Feroz Lakdawala for diverting shares, causing ₹45 crore loss. Wife also booked. Allegations include forgery and money-laundering.

MUMBAI: The Economic Offences Wing (EOW) of the Mumbai police has registered a case against Feroz Lakdawala, stepson of the late builder and film financer Yusuf Lakdawala, for allegedly diverting his father’s shares and causing a loss of ₹45 crore to the builder’s wife. The police said the accused diluted the shares when Yusuf was arrested by the Enforcement Directorate (ED) in a money-laundering case. He later died in Arthur Road Jail.

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The EOW has also booked Feroz’s wife Noorie Lakdawala in the case, following a complaint lodged by Yusuf’s wife Sabina. “We have registered an offence under Sections 406 (criminal breach of trust), 420 (cheating), 34 (common intention) and 120B (criminal conspiracy) of the Indian Penal Code against the two,” said an EOW officer.

The police said their preliminary inquiry revealed that Feroz, Noorie and others had hatched a criminal conspiracy by issuing rights shares in 10 private limited companies, where the late builder was a majority shareholder, without giving him the option to exercise his right to subscribe to these shares. No board meeting was held, no notice was issued and nor was any new account opened for the subscription, the police said.

Significantly, they added, the rights shares were issued at face value which was over 100 times lower than the extant Net Asset Value (NAV). Thus, the accused diluted the deceased’s shareholding (and that of the complainant) and caused the latter a wrongful loss of over ₹45 crore.

Yusuf Lakdawala was arrested in a money-laundering case initiated by the ED, which stemmed from an FIR registered by the EOW in April 2019. The allegations involve the usurpation of Khandala land originally owned by writer Mulk Raj Anand. Yusuf Lakdawala, with alleged assistance from associates, purportedly forged documents to claim ownership of the land. He was arrested by the ED in May 2021 and passed away in September 2021 while in custody.

The allegations against Lakdawala include forging agreement papers dating back to 1949 and using counterfeit documents to obtain an affidavit and a confirmation deed. It is also alleged that attempts were made to destroy the original land records at the Lonavala revenue office.