The Rajasthan High Court, in a major decision, stayed the order of the National Company Law Tribunal, Mumbai, under which the tribunal had quashed the order to attach the multi-storey building Royal Rajvilas in Udaipur.

Along with this, the court in the case of Udaipur Entertainment Pvt Ltd including others  have issued notices and summoned their answers. Justice Indrajit Singh gave this order while hearing the petition filed by ED.

According to the information In the petition, the Additional Solicitor General told that there is an allegation of embezzlement of about one thousand crore rupees against Bharat Bomb in Syndicate Bank. In this case, ED had registered a case of money laundering. 

Bomb and his associates also built Royal Rajvilas by purchasing immovable properties from this amount. The ED had attached this building as well.

On the other hand, by filing a petition before the National Company Law Tribunal, Mumbai, Udaipur Entertainment Pvt. requested to be declared bankrupt.

The facts were hidden in this petition and ED was also not made a party. Hearing this, the NCLT quashed the action taken by the ED to attach Royal Rajvilas. While the Company Law Tribunal did not have jurisdiction to issue this order. While hearing the matter, the single bench has sought answers from the concerned authorities while staying the order of the tribunal.

The background of the case:

Government of Maharashtra had issued orders for investigations against the project developer and his team for a multi crore fraud as mentioned in the complaints of 280 residents of Mumbai in 2020.

The residents of Mumbai have alleged that the team of Raj Vilas has done fraud with the people of Mumbai in the name of selling flats. In 2009, the builder Sunderlal Lodha and others started with their projects under the banners of Jai Vijay Nagri Phase 1 and 2.

According to the reports, both the projects have around 600 flats and more than 160 commercial office space. It has been informed that the project was suspended as there was too much of disorder in construction and handing over of flats to the customers. The residents then reported these incidents to police and registered cases against the builders in Maharera court of Mumbai. 

Source : Dainik Bhaskar