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Showing posts from October, 2017

Applicability of Chit Fund Law to Bhagtani Allotment Letter

Mumbai, 1 November, 2017: Some FIRs against Bhagtani cite only IPC sections, whereas others cite MOFA sections also. No FIR currently cites that Bhagtani violated the law banning money circulation schemes, although Bhagtani's allotment letter points to such a scheme.

The definition of Money Circulation Scheme in Prize Chits & Money Circulation Schemes Banning Act (PCMC Act) is: "money circulation scheme" means any scheme, by whatever name called, for the making of quick or easy money, or for the receipt of any money or valuable thing as the consideration for a promise to pay money, on any event or contingency relative or applicable to the enrollment of members into the scheme, whether or not such money or thing is derived from the entrance money of the members of such scheme or periodical subscriptions."

For ease of understanding, we can simplify this definition like this: "money circulation scheme" means any scheme, by whatever name called, for the m…

Bhagtani's Disguised Chit Fund Scam -- Is MPID Act Applicable?

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28th October, 2017, Mumbai: Is there an alternative view of Bhagtani's scam? Is there a radically different way to frame the issues, to reshape the legal battle in order to get a better grip on the slippery Bhagtani? Consider an alternative narrative, which we may name Bhagtani's Disguised Chit Fund Scam. If this alternative interpretation of facts fits the reality, and if it is supported by the Allotment Letters, Cancellation Deeds, transactions, etc, then it will enable you to file stronger FIRs by including the sections of Maharashtra Protection of Interests of Depositors Act, (MPID Act)

MPID Act is for protecting the public from companies that fraudulently lure investors to deposit their funds with extremely attractive rates of interest, and then willfully neglect to return the funds. Does this sound familiar to you? Does it make you feel that you have been victims of Bhagtani's Disguised Chit Fund Scam? If so, read further and ponder.

(Note: For ease of understanding…

Weak FIR against Bhagtanis? How to file strong FIR

28th October 2017, Mumbai: Multiple layers of criminality are involved in the Bhagtani scam but police often files weak FIRs that ignore many layers. For instance, FIRs like this one filed by Santacruz Police mentiononly IPC provisions although offenses under MOFA are also made out. Conviction rates in India are generally low due such "congenital defects" introduced into FIRs at inception.
Weak FIRs may give Bhagtanis and their co-accused escape-routes by giving the police scope to file A, B or C-Summary instead of a chargesheet,Or such FIRs may result in weak chargesheetsand weak trials resulting in acquittal.
Complainants, please go the extra mile to ensure that strong FIRs are registered. 
Dos & Don'ts for effective FIRs  Don't just fill up a proforma that says "Me too"! Proformas to enable Bhagtani victims to join existing FIRs encourage herd mentality. Please avoid.Instead, take the effort to write down your full story, with all supporting documents…

Bhagtani Victims' Voices #5: Subiya Shaikh, a school teacher, on Bhagtani Serenity in Powai

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Bhagtani Victims Voices #4: Ketan Gajara writes about Bhagtani Serenity, Powai

My name is Ketan Gajara, and I am 37 years old, married and with two daughters, and my family and I are still staying at my brother's house. Naturally, I wanted to purchase my own house and move into it. I first visited the project site of Bhagtani Serenity in Powai in July 2014, having heard about it from broker Vijay Morarka. After this site visit, I visited the office of JVPD Properties Pvt Ltd along with the broker for a discussion. The employees of JVPD Properties told us that the MCGM’s IOD approval was about to arrive, and construction work would start after three months and get completed by 2017-2018.They showed us documents showing that they had title over the land, and that the builders, namely Bhagtanis, had completed many projects. Based on these claims, I was convinced to book a 1BHK flat in Serenity project.
In order to get a better rate per square foot, I decided to pay 30% of the total flat cost up front. So, I paid a booking amount of Rs 23.54 lakhs out of the tota…