Court pulls up police for "eyewash" probe against Unitech Ltd

Delhi Police has been pulled up for conducting an "eyewash" investigation in a case of alleged misappropriation of Rs 500 crore by real estate major Unitech Ltd with a city court saying it was yet another case where the builder lobby has taken innocent investors for a ride.
The court said it was not satisfied with the probe by the investigating officer (IO) in the matter as the accused have amassed huge wealth which was infact the amount entrusted to them by the investors, who were paying bank interest on it.
"The allegations against the accused persons are quite serious in nature. This court has already made detailed observations vide orders dated July 27. This is yet another case wherein the builder lobby has taken hundreds of innocent investors for a ride," Additional Chief Metropolitan Magistrate (ACMM) Gaurav Rao said.

"Let that be the case, I am not satisfied with the investigation conducted by the IO. The report is nothing but an eyewash. No doubt investigation is the sole prerogative of the investigating agency but the court has ample power to monitor the investigation if the court is of the opinion that the same is not being conducted in a proper manner," the judge said.
The court also asked the Deputy Commissioner of Police to appear before him on October 14 and directed the IO to file a detailed report on the probe, which should be forwarded by the office of Police Commissioner along with his remarks.

It also asked the IO to conduct probe on various aspects, including the reasons for not arresting the accused persons in a transaction running into approximately Rs 500 crore wherein "prima facie it is a strong case of cheating/misappropriation of funds by the proposed accused persons."
As per allegations levelled by the complainant, on which an FIR has already been lodged, Unitech Ltd had launched a project in Sector-70 Gurgaon where housing complex was to come up and as per agreement entered between the parties in 2011, the project was to be completed by 2014 and the possession was to be handed over to the prospective buyers.

The complainant alleged that the firm had collected a sum of around Rs 500 crore from the investors as well as the bank and not even a single penny of the amount was utilised towards fulfilling the contractual obligation and alleged that the amount was misappropriated.