Mumbai: The Central Bureau of Investigation (CBI) has filed a case of alleged cheating, amounting to Rs 2,434 crore, against Jai Corporation Ltd along with its director Anand Jain on the orders of the Bombay High Court (HC). Two other companies – Urban Infrastructure Venture Capital and Urban Infrastructure Trustees Ltd – and other parties are also under the lens.
As per the HC order dated January 31, the CBI had been directed to form a special investigation team to probe the two complaints, dated December 22, 2021, and April 3, 2023, made by one Shoaib Richie Sequeira to the Economic Offences Wing, said a CBI official.
According to the CBI’s FIR, during May 2006 to June 2008, Jain and his group in their individual capacity and as directors/promoters of M/s Jai Corp Ltd in conspiracy with sister companies floated two entities – Urban Infrastructure Venture Capital and Urban Infrastructure Trustees Ltd.
Subsequently, they mobilised funds to the tune of Rs 2,434 crores from the public at large for the scheme of Urban Infrastructure Opportunities Fund and for the purpose of real estate business in Mumbai and other places, said the FIR.
It further alleged that on January 31, 2006, Indenture of Trust (IoT) was registered by the two aforementioned entities with the registrar of assurances, Mumbai, as settlor and trustee to establish venture capital fund, after which registration was made by the Securities and Exchange Board of India.
In the IoT, the disclosure of interest states that “no transaction arrangement or investment etc. will be made with another person with whom the director, officer, employee, etc, has some relationship and creates conflict of interest”. In contravention of the declaration, the accused thereby cheated the public at large and diverted the funds by way of making investments/giving unsecured loans within the sister concerns, said the FIR.
It claimed that the sister concerns of M/s Jai Corp. Ltd. have shown the unsecured loans as losses over the period of years on the basis of false and fabricated documents in order to justify the construction project. The CBI accused the corporate entities of executing forged agreements/documents against advance paid for purchase of benami land to justify the losses.
The central agency alleged that in pursuance of criminal conspiracy, Jain and other parties involved diverted part or whole of Rs 2,434 crore, which was collected from investors by Urban Infrastructure Venture Capital and Urban Infrastructure Trustees Ltd in 2006-2007, to Mauritius and/or Jersey Channel Islands for incorporation of corporate entities at Jersey, Mauritius and Channel Islands. Part or whole of Rs 3252.11 crore availed as loan from banks in 2006-07 by Navi Mumbai SEZ Pvt Ltd or part or whole of the Rs 686 crore availed as loan from banks in 2003-04 by Mumbai SEZ Ltd was also diverted to Mauritius and/or Jersey Channel Islands, said the CBI.
The FIR also accused Jain and others of diverting/laundering whole of Rs 98.83 crore foreign currency loan, which was availed from banks in 2008-09 by Navi Mumbai SEZ Pvt Ltd, to Mauritius. The accused subsequently floated corporate entities to facilitate diversion of loan amount availed in India to abroad, the FIR added.
During 2010-17, the parent company of Jain fraudulently exported the goods to Sarbags PTY Ltd, New South Wales, Australia and Assurance Products Corporation, California, USA on the basis of fictitious invoices/documents; thereby diverting the funds for their end utilisation, claimed the CBI.
Thus, M/s Jai Corp Ltd along with its director Anand Jain, its sister concern and their directors/promoters and other unknown private persons have committed criminal conspiracy, cheating and dishonestly inducing delivery of property, said the FIR. It also accused them ofmaking forged documents for the purpose of cheating and using as genuine the forged documents; thereby causing wrongful gain to themselves.
