In a significant development, Sumit Saha, Managing Director of Mack Star Marketing Private Limited, has formally contested the Economic Offences Wing’s (EOW) decision to close the Rs.88.47 crore fraud case against Housing Development Infrastructure Limited (HDIL) promoters Rakesh and Sarang Wadhawan. Saha has escalated the matter by writing to the Central Bureau of Investigation (CBI) and the Central Vigilance Commission (CVC), alleging that the EOW’s closure report is “motivated” and the result of an “influenced investigation.”
Background of the Case
In February 2023, based on Saha’s complaint, the NM Joshi Marg police station in Mumbai registered a case against HDIL promoters Rakesh and Sarang Wadhawan, along with other associates. The charges included cheating and dishonest execution of a deed of transfer, under various sections of the Indian Penal Code (IPC). The allegations centered around the unlawful sale of office units in the Kaledonia business park, located in Andheri East, without the knowledge of Mack Star’s partners. Mack Star was a joint venture between HDIL and Mauritius-based Ocean Deity Investment Holdings Limited (ODIL), with ODIL holding a 95% stake and, consequently, controlling rights over the property’s assets and proceeds.
EOW’s Closure Report and Saha’s Objections
On February 10, 2025, Saha received a letter from the EOW, dated February 6, stating that a closure report had been filed in the case. The EOW concluded that the dispute between the partners was civil in nature and found no evidence of fraudulent conduct by the Wadhawans in the allocation of certain office units in the Kaledonia building. The report stated that the alleged crime was “neither true nor false.”
In his letter to the CBI and CVC, dated February 25, Saha expressed deep concerns over the EOW’s findings. He argued that the closure report ignored evidence of criminality identified by the Enforcement Directorate (ED) concerning the same transactions under investigation. Saha emphasized that the report failed to assess the applicability of IPC provisions cited in the First Information Report (FIR) to the disputed transactions.
Furthermore, Saha criticized the closure report for delving into an “unnecessary and incorrect analysis” of ODIL’s shareholding restructuring in Mack Star and the company’s Articles of Association. He contended that these aspects were irrelevant to the criminal investigation of the alleged misappropriation of Mack Star’s assets. Saha also highlighted that the report relied heavily on a “false report” from the Registrar of Companies (RoC), which had since been withdrawn. He suggested that the closure report was a “manufactured document” designed to protect certain businessmen and influential politicians implicated in the case.
Call for Further Investigation
Saha has requested a meeting with the CBI and CVC to discuss the issue in detail. He seeks a thorough and unbiased investigation into the matter, expressing concerns that the EOW’s closure report may have been influenced by external factors. Saha’s appeal underscores the need for vigilance and integrity in investigating financial crimes, especially those involving significant sums and high-profile individuals.
EOW’s Position
When approached for comments, an EOW official stated, “Since the matter is sub judice, it would be inappropriate on my part to comment. Notices have been issued by the jurisdictional court to the parties concerned.” This response indicates that the case is currently under judicial consideration, and further developments are awaited.
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Conclusion
The challenge posed by Sumit Saha against the EOW’s closure of the Rs.88.47 crore HDIL fraud case brings to light critical questions about the thoroughness and impartiality of financial crime investigations in India. As the case progresses, it will be essential to monitor how investigative agencies address these allegations and ensure that justice is served without prejudice or external influence.
