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Godrej Properties Limited (GPL) has accused its Ahmedabad-based joint venture partner, Siddhi Group, of misappropriating INR 58 crore in a township project in Gujarat. Phase I, consisting of 71 buildings, was completed, but Phase II faced delays and structural issues, especially in the Celeste building, which required reconstruction. Despite GPL advancing INR 57.3 crore in loans at 12% interest, Siddhi Group allegedly diverted customer payments from RERA accounts to personal and related-party accounts. Vikhroli police have registered an FIR, investigating allegations of cheating and fund mismanagement.
Godrej Properties Limited (GPL) has filed a complaint alleging that its joint venture partner, Ahmedabad-based Siddhi Group, misappropriated INR 58 crore in a township project executed under the Gujarat Integrated Township Policy. Advertisement
The Vikhroli police have registered an FIR against Siddhi Group's key partners Mukesh Patel, Kalpesh A Patel, K M Patel, and Jasmin Patel citing cheating and misappropriation of funds. GPL and Siddhi Group entities, including Siddhi Infrabuild Pvt Ltd and Siddhi Infrabuildcon LLP, had collaborated on the township project. Phase I, comprising 71 buildings, was completed successfully, after which Phase II was launched. The current dispute revolves around Phase II.
Under the joint venture agreement, Siddhi Group's revenue share was increased to 84.4%, while GPL's share remained at 15.6%. However, under the Gujarat RERA Act, Siddhi Group was barred from withdrawing project funds until construction was completed and possession handed over. Phase II projects were expected to be executed under the Godrej brand by Siddhi Group.
In June 2023, GPL identified significant structural and quality issues, particularly in the Celeste building, which required major repairs and eventual reconstruction at the cost of Siddhi Group. Siddhi Group approached GPL for financial support, and on August 1, 2023, GPL advanced INR 15 crore under a loan agreement. Over time, a total of INR 57.3 crore was disbursed at an annual interest rate of 12%. Despite the funds, construction progress remained slow, and the Celeste building was demolished on November 28, 2024, for proper reconstruction.
GPL also alleged that while the Celeste project was marketed and sold under the Godrej brand, all customer collections were managed through RERA accounts controlled by Siddhi LLP. An internal investigation later revealed that significant funds were allegedly diverted from these accounts to personal and related-party accounts of Siddhi partners.
The FIR highlights a breach of trust in the joint venture, raising concerns about fund management and accountability in large-scale real estate collaborations. Authorities are investigating to ensure that financial misconduct is addressed and the interests of investors and homebuyers are protected.
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