Warrants of arrest issued against Megacity developers

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Ravindra Beleyur

17 October, 2009

Bangalore District Consumer Forum(Principal) has issued Warrants of Arrest against C P Yogeeshwara - Managing Director of Megacity(Bangalore) Developers & Builders Limited.

BANGALORE DISTRICT Consumer Forum(Principal), Bangalore has issued two Warrants of Arrest in respect of the Managing Director of Megacity(Bangalore) Developers & Builders Limited, Bangalore (Megacity). It has directed the Police Commissioner of Bangalore City to produce him before the Forum on 9th November, 2009 by 11 am.

National Consumer Disputes Redressal Commission, New Delhi (NCDRC) had made an order directing Megacity to refund the money along with interest at 18% p.a. from the respective dates of deposits along with a compensation of Rs. One Lakh payable within three months of the order. This order was passed in respect of about 88 Revision Petition Nos. 1529 to 1616 dated 6^th January, 2009.

About 60 of the above preferred to file Special Leave Petitions before the Supreme Court since they were not happy with the order. The Special Leave Petitions were admitted by the Supreme Court on 10th July, 2009. The remaining persons preferred to get the refund from Megacity they approaced Megacity for the refund in January, 2009 itself. About 20 of them preferred to file execution petitions before respective District Forum in July, 2009 since they did not get the refund until then as per the order given by NCDRC. Warrants of Arrest of the Managing Director of Megacity - who happens to be ex-MLA of Channapatna assembly - were issued by the District Forum in respect of two execution petitions since he or his representative did not appear for the hearing on 15th October, 2009.

Megacity had collected about Rs. 68 crores more than 10,000 members of Vajragiri Township Scheme during 1995-2000 promising sites in a world class Township on Bangalore – Mysore Road near Bidadi. It has executed sale deeds only to the extent of less than 750 cases until today. Most of the sites registered have only temporary approval from BMICAPA and NONE of the sites have the final approval from the BMICAPA – which is the approving authority.

It should be recalled that Ministry of Corporate affairs had ordered for a Serious Fraud Investigation and the CoD, Karnataka also is investigating this fraud.