Director of MVL Ltd arrested for delay in handover of three residential projects


One of the directors of real estate company MVL Limited has been arrested by the economic offences wing (EOW) of Delhi Police for defaulting on timely delivery of its three residential projects — Coral and Palm in Bhiwadi and Indihomes in Gurugram, despite having already collected more than 95% of the money from home buyers in most cases.


The director, Prem Adip Rishi, was arrested from outside Delhi high court on Wednesday and immediately produced before the chief metropolitan magistrate of Saket court, who sent him to five days of police remand. 


Homebuyers said a part of the MVL Coral project, which was supposed to be delivered in 2013, was built on illegally acquired land. Three of the towers have been delivered, while three others are unfinished, with excavation for one not having begun till date. Similarly, MVL Palm was sold without proper approvals, while in the case of Indihomes, which was to be delivered in 2011, possession is yet to be given.


Buyers alleged there are several cases registered at the courts in Saket, Tees Hazari, NCDRC and Delhi high court, which have also issued bailable and non-bailable warrants against him. 


EOW had put Rishi’s mobile phone on surveillance and laid a trap to arrest him after he began to regularly skip court proceedings. It got involved in the case after receiving a complaint from homebuyer Varun Sharma early in 2018, in which he said he had invested Rs 2.20 cr in a construction-linked plan of the Palm project, but till date, no construction had started. It conducted an inquiry after similar allegations from 39 more buyers landed up. 


In April 2018, it recommended an FIR to be registered against Rishi under sections 120B (criminal conspiracy), 406 (criminal breach of trust) and 420 (cheating) of the IPC. 


“We have registered a case of cheating against the person. We arrested him on the basis of complaints we had received last year. He is being interrogated further to identify other suspects,” said Suvashis Choudhary, additional CP, EOW.

Written by The Realty Paper

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