The Bombay High Court has criticized the EOW for mishandling the fraud case against Orra Realtors and ordered the transfer to the Mumbai Crime Branch for a thorough investigation | PTI
Mumbai: The Bombay High Court has come down heavily on the Economic Offences Wing (EOW), of the Mumbai police for its reluctance to conduct a thorough investigation into allegations of fraud against Orra Realtors Pvt. Ltd. and its key figure, Ramesh Ghamandiram Gowani. Finding the probe inadequate and dismissive, the court has ordered the transfer of a case registered against Gowani to the Mumbai Crime Branch.
A bench of Justices Revati Mohite-Dere and Neela Gokhale, on March 18, took a dim view of the EOW’s handling of the case and questioned its decision to close the inquiry on the basis of Gowani’s statements alone.
“In the facts and circumstances of the present case, we are quite flummoxed to see such reticence on the part of the EOW, Mumbai to probe in the acts complained of, more thoroughly and in depth,” the bench observed.
The HC passed the order while hearing a petition by Ashutosh Hemant Joshi alleging that Gowani, the whole and sole in-charge of the business of Orra Realtors, had engaged his father as a consultant in January 2013 for various real estate projects but failed to pay his dues.
According to Joshi, his father was instead allotted seven flats, which were sold off to third parties within months by Gowani. The petitioner further claimed that his father and other relatives had invested Rs 3.15 crore in Gowani’s redevelopment projects but never received any returns.
Joshi’s complaint, filed with the EOW in December 2023, alleged that Gowani had a history of duping cooperative societies by abandoning redevelopment projects. However, despite initiating preliminary inquiry and recording statements, the EOW abruptly decided to close the case, claiming no cognisable offence was made out.
The HC noted that the EOW had relied on Gowani’s statements without conducting a detailed probe. It found it “surprising” that the police closed the inquiry based on a signature mismatch on the MoU executed between Joshi’s father and Orra Realtors. The police’s reliance on Gowani’s version and their failure to send the disputed signature for forensic analysis raised serious concerns.
Further, the court was alarmed by the company’s questionable modus operandi. It noted that all former directors of Orra Realtors had resigned, leaving only two employees — a peon and a driver — as directors. The bench remarked that this pattern mirrored a case previously adjudicated by (retired) Justice Gautam Patel, involving Orra Realtors’ sister concern, Sharayu Developers Pvt. Ltd.
“It, prima facie, appears that Mr. Gowani and his family members, who were earlier Directors, strategised to remove themselves from any position of responsibility, so as to avoid liability of the company,” the court noted.
Highlighting discrepancies in the police report, the court observed that despite Joshi’s father rendering consultancy services, no financial records or invoices reflected any payment made to him. It also flagged the need to scrutinise bank transactions related to the alleged allotment of flats.
The bench underscored the importance of a fair probe, stating, “A defective or incomplete investigation is bound to rattle the faith reposed by members of society in law enforcement machinery. Investigating agencies cannot lose sight of the fact that citizens surrender their rights in them, with a legitimate expectation of protection of their interest by the State.”
Directing the transfer of the case, the court ordered the Joint Commissioner of Police, Crime Branch, Mumbai, to form a special team to conduct a detailed probe. The EOW has been instructed to hand over all case papers within two days, and the Crime Branch has been asked to submit a progress report within eight weeks. The case will be heard next on June 9, 2025.
