Karnataka High Court Issues Notices to BBMP, Developer Over EWS Land Fraud Allegations

Petitioners Allege Fraud and Deception

The petitioners, representing 1,512 allottees of the EWS quarters, have accused the BBMP of colluding with the project developer, Maverick Holdings and Investments Private Limited (MHIPL), and other entities, alleging that they were deprived of their rightful land and shelter through deceptive practices.

The issue centres on an agreement dating back to a 2012 Karnataka High Court order, which granted the petitioners a proportional share in the undivided land in Koramangala. This was part of a compromise agreement under which MHIPL was supposed to construct apartments for the EWS allottees on 7.2 acres of land. However, the petitioners claim that no apartments were built, and their rights were further compromised by subsequent illegal actions.

Faulty Construction and Collapse of Quarters

The BBMP initially constructed quarters for EWS families in Koramangala. However, due to what the petitioners describe as “faulty construction,” several blocks collapsed, forcing the evacuation of the families who had been allotted homes. The petitioners argue that despite these severe issues, the BBMP and MHIPL engaged in further questionable activities, depriving them of their shelter and land.

Illegal Transfer of Land to a Third Party

The crux of the petitioners’ complaint relates to a mortgage deed executed on April 1, 2019, by MHIPL with the BBMP’s consent. Under this deed, 50% of the land allocated to the 1,512 EWS families was allegedly transferred to a third-party entity, Sammaan Capital Limited, without the families’ knowledge or consent. The petitioners claim that this transaction was illegal and fraudulent, as the land rightfully belongs to them under the 2012 High Court ruling.

The petitioners further allege that Sammaan Capital Limited has since issued a public notice under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) in August 2024, claiming Rs 560.46 crore from Garuda Maverick Infrastructure Private Limited, Embassy Garuda Realty Ventures LLP, and Maverick Holdings. The notice also mentions 3.82 acres of land, which the petitioners argue is part of the 22 acres in which they have an undivided interest.

Demand for Lokayukta Probe and Legal Action

The petitioners are urging the court to direct the Lokayukta police to investigate the matter, accusing all involved parties of conspiracy and fraud. They argue that the BBMP should never have consented to MHIPL’s mortgage deal with any third party, including Embassy Garuda Realty Ventures LLP, and have labelled this conduct as part of a broader conspiracy to cheat them out of their land.

In light of these allegations, the petitioners are demanding that the court order the Lokayukta police to register a formal complaint against all involved entities. They assert that only a thorough probe by the Lokayukta can uncover the full extent of the fraudulent activities.

Court Response and Next Steps

Justice Hemant Chandanagoudar, presiding over the matter, has issued notices to several parties, including MHIPL, Garuda Maverick Infrastructure Project Private Limited, Embassy Garuda Realty Ventures LLP, Sammaan Capital Limited, and the Lokayukta police. The case has been adjourned for further consideration, with the next hearing scheduled for September 30.

This legal battle comes at a time when Bengaluru is facing increasing scrutiny over land use and housing projects, particularly those intended for lower-income groups. The case, involving allegations of collusion and fraud by multiple stakeholders, has drawn significant public attention and raises broader concerns about governance and transparency in housing projects for the economically disadvantaged.

As the case proceeds, many are watching closely to see whether the court will order a Lokayukta investigation, which could lead to potential legal ramifications for the BBMP and its private collaborators.