Allahabad HC quashes two FIRs against M3M India

The Allahabad High Court has quashed the Enforcement Case Information Report (ECIR) & the 2 subsumed FIRs, being the predicate offence, filed against realty developer M3M India . The order, effectively puts an end to the legal proceedings initiated against the company. In September 2024, the High Court had granted a stay on the PMLA proceedings against the group before the appellate authority. The two FIRs were registered in 2023, filed under sections of the Indian Penal Code (now known as Bharatiya Nyaya Sanhita), where it was claimed that the transactions between M3M India, Indiabulls Housing Finance, and other stakeholders had caused financial harm and involved undervaluation of property assets. Based on these FIRs, the Enforcement Directorate (ED) initiated an ECIR, adding to the legal challenges faced by M3M India. The High Court, after extensive hearings, observed that the allegations raised in the FIRs were primarily commercial disputes, better suited for resolution through civil or arbitral proceedings rather than criminal investigations. The court highlighted that the petitioners, including M3M India, had been subjected to criminal proceedings despite the existence of ongoing arbitration related to the contested transactions. The HC also noted that the FIRs failed to establish prima facie evidence of criminal intent, instead revealing contractual disagreements that did not warrant the invocation of criminal law. 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The quashing of the FIRs and ECIR provides relief to M3M India. “We welcome the judgment, which upholds the principles of justice and fairness. This ruling reaffirms our commitment to ethical business practices and reinforces our trust in the judiciary. We remain focused on delivering value to our stakeholders and contributing to India’s real estate sector with integrity,” a spokesperson for the company said. Nominations for ET MSME Awards are now open. The last day to apply is December 15, 2024. Click here to submit your entry for any one or more of the 22 categories and stand a chance to win a prestigious award. (You can now subscribe to our Economic Times WhatsApp channel )