Three firms allege Macrotech Developers registered project with MahaRERA based on ‘fraudulent representation’'

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Three entities, in a public notice on July 27, alleged that Macrotech Developers had obtained a registration for its proposed Lodha Mahalakshmi- Signet project in Mumbai using fraudulent representation and documents, and it ought to be cancelled.

The three entities are Urban Infrastructure Trustee Limited (UITL), Urban Infrastructure Venture Capital Fund (UIVCF) and Urban Infrastructure Real Estate Fund (UIREF).

The public notice issued by legal firm Dastur Kalambi & Associates on behalf of UITL, UICVF, and UIREF said its clients had initiated execution proceedings in the Bombay High Court against the promoters,  Money Magnum Nest Private Limited and Macrotech Developers Limited.

The land parcel in question measures 28,426.64 square meters together with structures on it, known as Bradbury Mills, in Byculla division located near the famous Dagdi Chawl near Jacob Circle.

A search on the Maharashtra Real Estate Authority’s website revealed that the project had been registered as Lodha Mahalakshmi-Signet by Macrotech Developers. It is a commercial project with a proposed completion date of August 31, 2027.

The website states that 21 floors have been sanctioned for the project including 345 office and shop spaces measuring between 21 square meters and 97 square meters.

The public notice issued by the legal firm said UITL, UICVF and UIREF had entered into agreements with promoters of the project, Kishor Shah, Vimal Shah, and Nainesh Shah of the Everest Group (now Terraform Realty), on the development of the property.

The project was supposed to be developed by a Special Purpose Vehicle (SPV) called Vengas Realtors Private Limited, in which the three entities and the promoters were shareholders.

UITL, UICVF, and UIREF paid money to Everest Fincap Pvt Ltd (now known as Money Magnum Nest) towards the project, the notice said.

Money Magnum “is a company owned, managed, and controlled by the promoters,” it added.

“Our clients believe that the scheduled property is now the site of a proposed development project 'Lodha Mahalakshmi - Signet' and Marcotech Developers Ltd is the proposed developer."

The public notice stated that under five Arbitral Awards dated May 4, 2019, May 27, 2019, and October 22, 2019 (which are now decrees of the court), an aggregate amount of about Rs 735 crore “is due and payable to our clients by the promoters.”

The shares held by the promoters in Money Magnum Nest “have also been attached by our clients in execution proceedings. Our clients have also adopted proceedings against the other shareholder of Money Magnum Nest Pvt Ltd and also, inter alia, against Macrotech Developers Ltd,” added the notice.

“Attention is also drawn of the public at large that our clients have filed a complaint with the MahaRERA that the MahaRERA registration obtained for the proposed Lodha Signet project is based on fraudulent representations and documents, and ought to be cancelled," the notice further adds.

“Our clients have initiated execution proceedings in the Bombay High Court against the promoters, Money Magnum Nest Pvt ltd and Macrotech Developers Ltd, for recovery of the decreed amounts.”

Microtech Developers, in an email response to queries from Moneycontrol, said it had written to MahaRERA two weeks ago that there had been an error in its filing for the registration of the project and that it should be put on hold.

The statement read: "Macrotech Developers have entered into an arms-length transaction with Money Magnum Nest Pvt. Ltd. and there is no dispute on land or title for the parcel that we intend to develop. Lodha is not involved in the dispute in any manner and will refrain from commenting on the dispute between the other parties as the matter is sub judice.”

“As a responsible organization, Macrotech Developers would like to assure all its stakeholders, partners and customers that the company holds ethics at its core and will not engage in any activity that will jeopardise their trust in us," it added.