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Goregaon police recently registered a first information report (FIR) against Wadhwa Group, accusing the firm of cheating developer Polycon Realtors out of INR 57 crore. According to the FIR, Wadhwa Group directors, including Navin Makhija, allegedly failed to fulfil financial commitments made under an agreement. Despite receiving additional floor space index (FSI) and funds through a settlement deal, the obligations were reportedly not honoured. The dispute stems from a redevelopment project at Unnat Nagar Akshaya Cooperative Housing Society, originally awarded to Policon Realtors in 2003. The matter has since been transferred to the Economic Offences Wing (EOW) for further investigation.
Last week, Goregaon police registered a first information report (FIR) against Wadhwa Group, alleging that the company cheated developer Policon Realtors out of INR 57 crore. Advertisement
The FIR stated that Wadhwa Group directors, including Navin Makhija, failed to uphold financial commitments specified in the agreement, despite having received additional floor space index (FSI) and funds as part of a settlement arrangement. The case has been handed over to the Economic Offences Wing (EOW) for further inquiry.
Polycon Realtors had secured a tender in 2003 to redevelop Unnat Nagar Akshaya Cooperative Housing Society in Goregaon (W). The project was scheduled for completion within 42 months, and a commencement certificate had been issued on 18 October 2005. The redevelopment entailed the construction of five towers, each designed to accommodate 68 flats. However, only one tower saw partial progress, with 14 floors being constructed. Work came to a standstill after residents declined to vacate the premises. Complications deepened when Mhada amended its rules, leading to a stay order on the construction activity.
In 2009, Polycon Realtors engaged Wadhwa Group to revive the stalled project. The latter had agreed to pay INR 5 crore, allocate 18% of the total saleable flat area to Polycon Realtors, and complete the redevelopment within 36 months, as mentioned in the FIR. Although Wadhwa Group initially paid INR 2.5 crore, construction did not commence, with the firm attributing delays to ongoing FSI adjustments by Mhada.
A supplementary development agreement was subsequently signed in 2013, under which the carpet area allocation was increased to 1,050 sq ft per member. Following this, Polycon Realtors requested the remaining INR 2.5 crore. However, Wadhwa Group allegedly refused to make the payment, claiming that the revised contract terms were unacceptable. According to the FIR, Wadhwa Group also failed to meet the project completion deadline.
Both companies approached the Bombay High Court, which appointed retired Justice D K Deshmukh as arbitrator. Despite agreeing to settlement terms during arbitration, Wadhwa Group reportedly did not honour the commitments, as noted in the FIR. The matter underscores the complexities surrounding redevelopment projects in Mumbai and highlights the legal recourse being sought by developers when agreements are allegedly breached.
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