E-Paper
SC rejects plea of MGF, directors for stay on Emaar’s FIR
The court said the observations of a trial court or the high court will not prevent the petitioners from availing of all legal remedies
The Supreme Court has rejected the plea of MGF Development Limited and its directors for a stay on Emaar India’s First Information Report (FIR) against them for allegedly siphoning off ₹180 crore.
A bench of justices Dhananjaya Y Chandrachud and Hima Kohli on Wednesday refused to interfere saying the matter related to a cognizable offence. It dismissed an appeal challenging the Delhi high court’s September 12 verdict upholding an order of a lower court in April 2021 for the FIR.
The bench said the observations of a trial court or the high court will not prevent the petitioners from availing of all legal remedies.
MGF and its 10 directors are accused of inducing Emaar to sign joint development agreements with Nanny Infrastructure Private Limited and Saum Infra Private Limited without disclosing their relationship with these entities.
Emaar has alleged MGF director Shravan Gupta siphoned off ₹37.34 crore and ₹142.68 crore by signing joint development agreements for two housing projects with the two firms. It alleged the two entities were shell companies of Gupta and his associates incorporated with the objective of siphoning off the funds.
Senior advocates Mukul Rohatgi and Siddharth Luthra, who appeared for MGF, informed the top court that the dispute is of civil nature and is unnecessarily being given a criminal hue. They said arbitration proceedings between the two companies were pending in London.
Emaar’s lawyer, Maninder Singh, submitted the accused stealthily removed the money for the personal benefit which cannot be considered a pure and simple financial transaction.
