Delhi HC Issues Notice To CBI On West Delhi Mall Fraud, Corruption Case

Delhi High Court

The Delhi High Court has directed the Central Bureau of Investigation to respond to a petition highlighting serious allegations of corruption and financial misconduct linked to a shopping mall project in West Delhi.

The case has garnered attention due to the involvement of multiple parties, including government officials, real estate developers, and corporate tenants.

Petitioner’s Allegations Of Fraud

The petition was filed by the former majority shareholder and director of S.S. Con-Build Private Limited, which was initially responsible for the development of the mall project. The petitioner claims that the company was removed from the project under fraudulent circumstances and alleges that the mall, originally known as Capitol City Mall and later rebranded as “Emaya,” became the epicenter of widespread illegal activity.

Key Points In Petition

The petition describes a series of corrupt practices, including illegal occupation of land, unauthorized commercial exploitation, and extensive manipulation of government records. The central issue revolves around a plot of land measuring 6,085 square meters in Paschim Puri, New Delhi, originally leased to S.S. Con-Build by the Delhi Development Authority (DDA) in 2007.

In 2020, after years of unpaid dues, including over ₹25 crore in ground rent and conversion charges, DDA lawfully terminated the lease with S.S. Con-Build. Despite this, the petition alleges that the company’s director, in collusion with others, continued to operate on the canceled land by using shell companies. These entities reportedly forged documents and managed to register sub-leases with the help of officials from both the DDA and the Sub-Registrar’s Office.

Involvement Of Corporate Tenants

The situation became more troubling when well-known corporate tenants, despite being aware of the lease termination, continued to enter into sub-lease agreements and operate within the mall. This raised concerns about the role of these tenants in perpetuating the fraudulent activities and the larger conspiracy to defraud the public exchequer.

The petition claims that the conspiracy, which involved both public and private entities, defrauded the government of over ₹100 crore. This includes unpaid lease dues and the evasion of unearned increase charges, which would have been rightfully owed to the government.

Request For A CBI Investigation

In response to the serious allegations, the petitioner, represented by Senior Advocate Vikas Pahwa and Advocate Gaurav Gupta, has asked for a thorough investigation by the CBI.

The petition calls for criminal charges under sections of the Indian Penal Code, including 420 (cheating), 406 (criminal breach of trust), 467 (forgery), 468 (forgery for purpose of cheating), 471 (using forged documents), and 120B (criminal conspiracy), as well as provisions under the Prevention of Corruption Act.

Court’s Direction To CBI

Justice Girish Kathpalia, while hearing the case, issued a notice to the CBI, signaling that the court is taking the allegations seriously. The notice instructs the CBI to look into the claims and consider a formal investigation into the actions of all involved parties, including public officials and corporate entities.

Implications Of Case

The case has significant implications for the real estate sector in Delhi, particularly with regard to corruption within public departments. The High Court’s decision to involve the CBI suggests that the allegations of deep-rooted collusion and financial misconduct may lead to a larger probe into land scams and illegal activities in the region.

The court’s next steps will be critical in determining whether a full investigation will be initiated, which could uncover the extent of the fraud and hold all responsible parties accountable.