Delhi court takes cognisance of cheating case against M3M, summons promoters

New Delhi, Feb 2 (PTI) A Delhi court has taken cognisance of a chargesheet filed by the Economic Offences Wing (EOW) against real estate major M3M India Pvt Ltd and its promoters Basant Bansal, Roop Bansal and Pankaj Bansal in connection with an alleged land fraud case involving MGF Developments Ltd.

Chief Judicial Magistrate Harshita Mishra said there were sufficient grounds to proceed against the accused for alleged offences under sections 406 (criminal breach of trust), 420 (cheating), 120B (criminal conspiracy) and 34 (common intention), and summoned them to appear before the court on April 4.

"At the stage of taking cognisance, this Court is required to see whether there are sufficient grounds for proceeding and not whether the evidence is enough for conviction of the accused persons," the magistrate said.

The case arises from an FIR registered in March 2022 on a complaint by MGF Developments Ltd relating to a land exchange deal in Gurugram involving land valued at approximately Rs 450 crore.

The dispute between the two real estate developers dates back to 2016 and centres on competing claims over a parcel of land in Chauma village, Gurugram. The controversy has led to multiple complaints and investigations by agencies, namely the Delhi Police's Economic Offences Wing, Gurugram Police and the Enforcement Directorate.

According to the prosecution, MGF had agreed to transfer land parcels to the M3M Group in exchange for other land and a payment of Rs 114 crore through post-dated cheques. It was agreed that the transfer would stand cancelled if the cheques were dishonoured. MGF has alleged that the cheques were later dishonoured, but the land was nevertheless dealt with by the accused.

From a perusal of the chargesheet, the court said, "It prima facie appears that the accused persons induced the complainant company into entering into an agreement qua exchange of land in Gurugram and subsequently defaulted in the payment and fraudulently got the land mutated for a building project." The FIR alleges that despite not paying the consideration amount or having lawful possession, the accused partitioned portions of over 31 acres of land and applied for licences to develop residential projects under Haryana's New Integrated Licensing Policy, causing losses of about Rs 450 crore to MGF.

Earlier, the Punjab and Haryana High Court, in an order dated April 9, 2025, restrained M3M from creating any third-party rights over the disputed land pending adjudication of MGF's appeal. The land forms part of licensed areas where multiple commercial and residential projects are being developed in Sector 113, Gurugram. PTI MDB AMJ AMJ