Karnataka High Court has dismissed an FIR lodged by the purchasers of the postponed Mantri Serenity project against the Mantri Group, a real estate company. The court has also lifted the Enforcement Directorate’s (ED) seizure of properties valued around ₹285 crore.
The court’s verdict was in response to a writ petition submitted by the developer seeking the dismissal of the FIR. As a result, the proceedings in crime No 163 of 2020 (the FIR) and Spl CC No 2874 of 2022 (ED attachment) have been dismissed.
Previously, the ED had seized immovable assets worth Rs 300.4 crore (including Mantri Serenity, Mantri Web City and Mantri Energia projects) under the Prevention of Money Laundering Act (PMLA), 2002, after discovering evidence of fund misappropriation. This action was taken following an FIR filed by homebuyers at Subramanyapura Police Station in 2020, accusing the developer of criminal charges.
Legal experts have argued that a contract violation or an agreement breach does not fall under criminal law. They further stated, “The money laundering case is based on the FIR, thus if the FIR is quashed, the ED attachment will also not be valid”.
The court also noted that offences under the Prevention of Money Laundering Act, 2002, cannot stand independently after the FIR has been quashed. This judgement is perceived as a significant setback for homebuyers.
