PRIMEZONE DEVELOPERS PRIVATE LIMITED S. VENKATESHWAR (I vs THE STATE OF MAHARASHTRA AND ORS. Advocate - AVHAD AVINASH BHASKARRAO — APEAL/337/2026

Case under Mah. Protection of Interests of Depositors Section 11. Disposed: Contested--Disposed Off on 08th May 2026.

Case disposed

CNR: HCBM010272492020

Filing Number

APEAL/6886/2020

Filing Date

15-Dec-2020

Registration No

APEAL/337/2026

Registration Date

08-Apr-2026

Judge

Hon'ble Shri Justice A.S. Gadkari , Hon'ble Justice Kamal Khata

Coram

Hon'ble Shri Justice A.S. Gadkari , Hon'ble Justice Kamal Khata

Bench Type

Division

Judicial Branch

Criminal

Decision Date

08-May-2026

Nature of Disposal

Contested--Disposed Off

Last updated 27-May-2026

Acts & Sections

Mah. Protection of Interests of Depositors Section 11

Petitioner(s)

  1. 1.PRIMEZONE DEVELOPERS PRIVATE LIMITED S. VENKATESHWAR (I

Respondent(s)

  1. 1.THE STATE OF MAHARASHTRA AND ORS. Advocate - AVHAD AVINASH BHASKARRAO

  2. 2.COMPETENT AUTHORITY UNDER MPID ACT, MUMBAI

  3. 3.EONOMIC OFFENCE WING, Through Senior Police Inspector

  4. 4.QUICKER REALTY LTD.

  5. 5.RUDRAVEERA DEVELOPERS LIMITED

Case History

  1. Case disposedDisposed

  2. 08-May-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Justice Kamal KhataView PDF

    CASE SUMMARY: APEAL/337/2026 Court: Bombay High Court Date: 8th May, 2026 Judges: Kamal Khata, J. & A.S. Gadkari, J. DECISION The Court SET ASIDE the Sale Certificate dated 31st August 2020 and the auction of properties attached under the MPID Act in connection with the NSEL scam, finding the entire process was riddled with fraud, gross undervaluation, and procedural irregularities designed to benefit a particular bidder. KEY FINDINGS 1. Gross Undervaluation: - Property initially valued at ₹60 crores (May 2018) was subsequently devalued to ₹10.41 crores (June 2020) - Court found this 6-fold reduction unjustifiable and fraudulent - Property deliberately misclassified from "residential" to "agricultural" to suppress value 2. Procedural Irregularities: - First auction notice published only in Chandigarh editions of newspapers (limited local circulation) - Hindi-speaking area received Punjabi-language notices - Subsequent auction notices advertised only on Quiker Realty's website with no publicly available viewership data - No evidence of wide publicity despite statutory requirement 3. Fraudulent Auction Process: - Common director (Rajan Goyal) in both competing bidders: Brij Gopal Construction (₹8 crores) and winning bidder Rudraveerya Developers (₹10 crores) - Auction conducted as sealed bid rather than open auction, limiting competitive bidding - Property location incorrectly described on Quiker website 4. License Issues: - Development license expired December 9, 2016, and was never renewed - First valuation (May 2018) assumed license validity without verification - Court rejected argument that expired license justified reclassification to agricultural land 5. Conflict of Interest: - Quiker Realty appointed as both valuer and auctioneer despite clear conflicts - Failed to conduct site inspection for 2020 valuation - Deliberately misrepresented property characteristics COURT'S REASONING The Court held that: 1. Fraud vitiates all acts – The entire process was "nothing short of a fraud played upon the Court" and 13,000 NSEL victims who lost ₹5,600 crores 2. Fiduciary duty breached – The Competent Authority, entrusted with protecting investors' interests, instead became complicit in undervaluing assets 3. "Scam within the scam" – While original NSEL scam defrauded investors, the subsequent auction process defrauded them again by selling their recovery assets at grossly depressed prices 4. Timing suspicious – Sale finalized during COVID-19 pandemic when land markets were at lowest values 5. Inadequate price is fatal – Even without fraud allegations, gross undervaluation of attached property is sufficient to set aside auction under settled law ORDERS PASSED The Court directed: (a) New Competent Authority to be appointed within 4 weeks (b) New Valuer to be appointed by the new Authority (replacing Quiker Realty) (c) Fresh Auction to be conducted with: - Wide publicity in local newspapers - Electronic media coverage - Open bidding process (d) Sale Certificate set aside (dated 31.8.2020), but attachment continues (e) Refund of ₹10.09 crores received from Rudraveerya Developers within 4 weeks (f) Investigation against Competent Authority members and Quiker Realty; compliance affidavit within 6 months (g) Quiker Realty disqualified for minimum 5 years from conducting valuations/auctions for Maharashtra Government (h) Appeal No.932/2022 (homebuyers) allowed (i) All interim applications disposed SIGNIFICANCE This landmark judgment protects interests of defrauded investors in NSEL scam and establishes that Government authorities cannot become complicit in perpetuating frauds through mala fide valuations and auction processes, even after sale completion. This case analysis is maintained by casestatus.in based on publicly available court records.

  3. 29-Apr-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Justice Kamal KhataView PDF

  4. 29-Apr-2026

    At 3.00 P.M.

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Justice Kamal Khata

  5. 28-Apr-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Justice Kamal KhataView PDF

  6. 28-Apr-2026

    Bottom Of Board-

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Justice Kamal Khata

  7. 24-Apr-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Justice Kamal KhataView PDF

  8. 24-Apr-2026

    Bottom Of Board-

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Justice Kamal Khata

  9. 23-Apr-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Justice Kamal KhataView PDF

  10. 23-Apr-2026

    Bottom Of Board-

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Justice Kamal Khata

  11. 22-Apr-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Justice Kamal KhataView PDF

  12. 22-Apr-2026

    At 3.00 P.M.

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Justice Kamal Khata

  13. 21-Apr-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Justice Kamal KhataView PDF

  14. 21-Apr-2026

    -Due Admission

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Justice Kamal Khata

  15. 17-Apr-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Justice Kamal KhataView PDF

  16. 17-Apr-2026

    -Due Admission

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Justice Kamal Khata

  17. 09-Apr-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Justice Kamal KhataView PDF

  18. 09-Apr-2026

    -Admission

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Justice Kamal Khata

  19. 09-Apr-2026

    -Due Admission

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Justice Kamal Khata

  20. 24-Mar-2026

    -Admission

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Justice Kamal Khata

  21. 17-Mar-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Justice Kamal KhataView PDF

  22. 17-Mar-2026

    -Admission

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Justice Kamal Khata

  23. 12-Mar-2026

    -For Directions

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Justice Kamal Khata

  24. 06-Mar-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Justice Kamal KhataView PDF

  25. 06-Mar-2026

    -Admission

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Shyam C. Chandak

  26. 27-Feb-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Shri Justice Shyam C. ChandakView PDF

  27. 27-Feb-2026

    -Due Admission

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Shyam C. Chandak

  28. 13-Feb-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Shri Justice Shyam C. ChandakView PDF

  29. 13-Feb-2026

    Bottom Of Board-

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Shyam C. Chandak

  30. 11-Feb-2026

    Bottom Of Board-

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Shyam C. Chandak

  31. 28-Jan-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Shri Justice Shyam C. ChandakView PDF

  32. 28-Jan-2026

    Bottom Of Board-

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Shyam C. Chandak

  33. 27-Jan-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Shri Justice Shyam C. ChandakView PDF

  34. 27-Jan-2026

    Bottom Of Board-

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Shyam C. Chandak

  35. 23-Jan-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Shri Justice Shyam C. ChandakView PDF

  36. 23-Jan-2026

    -Due Admission

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Shyam C. Chandak

  37. 21-Jan-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Shri Justice Shyam C. ChandakView PDF

  38. 21-Jan-2026

    -Due Admission

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Shyam C. Chandak

  39. 13-Jan-2026

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Shri Justice Shyam C. ChandakView PDF

  40. 13-Jan-2026

    Due Admission - 1

    Hon'ble Smt. Justice Bharati Dangre , Hon'ble Shri Justice Shyam C. Chandak

  41. 16-Dec-2025

    Hon'ble Smt. Justice Bharati Dangre,hon'ble Shri Justice Shyam C. ChandakView PDF

  42. 16-Dec-2025

    For Circulation

    Hon'ble Smt. Justice Bharati Dangre , Hon'ble Shri Justice Shyam C. Chandak

  43. 02-Dec-2025

    Hon'ble Smt. Justice Bharati Dangre,hon'ble Shri Justice Shyam C. ChandakView PDF

  44. 10-Nov-2025

    Due Admission - 1

    Hon'ble Shri Justice Sarang Vijaykumar Kotwal , Hon'ble Shri Justice Shyam C. Chandak

  45. 16-Sep-2025

    Hon'ble Shri Justice Sarang Vijaykumar Kotwal,hon'ble Shri Justice Shyam C. ChandakView PDF

  46. 16-Sep-2025

    -Admission

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Ranjitsinha Raja Bhonsale

  47. 10-Sep-2025

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Shri Justice Ranjitsinha Raja BhonsaleView PDF

  48. 04-Aug-2025

    Due Admission - 1

    Hon'ble Shri Justice Sarang Vijaykumar Kotwal , Hon'ble Shri Justice S. M. Modak

  49. 14-Jul-2025

    -Admission

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Rajesh S. Patil

  50. 28-Apr-2025

    Hon'ble Shri Justice Sarang Vijaykumar Kotwal,hon'ble Shri Justice S. M. ModakView PDF

  51. 28-Apr-2025

    Due Admission - 1

    Hon'ble Shri Justice Sarang Vijaykumar Kotwal , Hon'ble Shri Justice S. M. Modak

  52. 07-Apr-2025

    Hon'ble Shri Justice Sarang Vijaykumar Kotwal,hon'ble Shri Justice S. M. ModakView PDF

  53. 07-Apr-2025

    Due Admission - 1

    Hon'ble Shri Justice Sarang Vijaykumar Kotwal , Hon'ble Shri Justice S. M. Modak

  54. 20-Feb-2025

    Hon'ble Shri Justice Sarang Vijaykumar Kotwal,hon'ble Shri Justice S. M. ModakView PDF

  55. 20-Feb-2025

    Due Admission - 1

    Hon'ble Shri Justice Sarang Vijaykumar Kotwal , Hon'ble Shri Justice S. M. Modak

  56. 20-Jan-2025

    Hon'ble Shri Justice Sarang Vijaykumar Kotwal,hon'ble Shri Justice S. M. ModakView PDF

  57. 20-Jan-2025

    Due Admission - 1

    Hon'ble Shri Justice Sarang Vijaykumar Kotwal , Hon'ble Shri Justice S. M. Modak

  58. 16-Jan-2025

    Hon'ble Shri Justice Sarang Vijaykumar Kotwal,hon'ble Shri Justice S. M. ModakView PDF

  59. 16-Jan-2025

    At 2.30 P.M.

    Hon'ble Smt. Justice Bharati Dangre , Hon'ble Justice Smt Manjusha Ajay Deshpande

  60. 10-Dec-2024

    Hon'ble Smt. Justice Bharati Dangre,hon'ble Justice Smt Manjusha Ajay DeshpandeView PDF

  61. 10-Dec-2024

    Due Admission - 1

    Hon'ble Smt. Justice Bharati Dangre , Hon'ble Justice Smt Manjusha Ajay Deshpande

  62. 14-Nov-2024

    Hon'ble Smt. Justice Bharati Dangre,hon'ble Justice Smt Manjusha Ajay DeshpandeView PDF

  63. 14-Nov-2024

    Due Admission - 1

    Hon'ble Smt. Justice Bharati Dangre , Hon'ble Justice Smt Manjusha Ajay Deshpande

  64. 15-Oct-2024

    Hon'ble Smt. Justice Bharati Dangre,hon'ble Justice Smt Manjusha Ajay DeshpandeView PDF

  65. 15-Oct-2024

    Due Admission - 1

    Hon'ble Smt. Justice Bharati Dangre , Hon'ble Justice Smt Manjusha Ajay Deshpande

  66. 18-Sep-2024

    Hon'ble Smt. Justice Bharati Dangre,hon'ble Justice Smt Manjusha Ajay DeshpandeView PDF

  67. 18-Sep-2024

    At 2.30 P.M.

    Hon'ble Smt. Justice Bharati Dangre , Hon'ble Justice Smt Manjusha Ajay Deshpande

  68. 07-Mar-2024

    Admission_

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Shyam C. Chandak

  69. 07-Mar-2024

    Admission_

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Shyam C. Chandak

  70. 07-Mar-2024

    Admission_

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Shyam C. Chandak

  71. 07-Mar-2024

    Admission_

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Shyam C. Chandak

  72. 16-Jan-2024

    Due Admission - 1

    Hon'ble Ms. Justice Gauri Godse , Hon'ble Justice Revati Mohite Dere

  73. 13-Dec-2023

    Hon'ble Ms. Justice Gauri Godse,hon'ble Justice Revati Mohite DereView PDF

  74. 13-Dec-2023

    Due Admission - 1

    Hon'ble Ms. Justice Gauri Godse , Hon'ble Justice Revati Mohite Dere

  75. 08-Nov-2023

    Hon'ble Ms. Justice Gauri Godse,hon'ble Justice Revati Mohite DereView PDF

  76. 08-Nov-2023

    For Orders (Due Matters)

    Hon'ble Ms. Justice Gauri Godse , Hon'ble Justice Revati Mohite Dere

  77. 02-Nov-2023

    Hon'ble Ms. Justice Gauri Godse,hon'ble Justice Revati Mohite DereView PDF

  78. 02-Nov-2023

    For Orders (Due Matters)

    Hon'ble Ms. Justice Gauri Godse , Hon'ble Justice Revati Mohite Dere

  79. 03-Oct-2023

    Hon'ble Ms. Justice Gauri Godse,hon'ble Justice Revati Mohite DereView PDF

  80. 03-Oct-2023

    For Orders (Due Matters)

    Hon'ble Ms. Justice Gauri Godse , Hon'ble Justice Revati Mohite Dere

  81. 25-Sep-2023

    Hon'ble Ms. Justice Gauri Godse,hon'ble Justice Revati Mohite DereView PDF

  82. 25-Sep-2023

    For Orders (Due Matters)

    Hon'ble Ms. Justice Gauri Godse , Hon'ble Justice Revati Mohite Dere

  83. 30-Aug-2023

    Hon'ble Ms. Justice Gauri Godse,hon'ble Justice Revati Mohite DereView PDF

  84. 30-Aug-2023

    For Circulation

    Hon'ble Ms. Justice Gauri Godse , Hon'ble Justice Revati Mohite Dere

  85. 30-Aug-2023

    At 2.30 P.M.

    Hon'ble Ms. Justice Gauri Godse , Hon'ble Justice Revati Mohite Dere

  86. 07-Aug-2023

    Hon'ble Ms. Justice Gauri Godse,hon'ble Justice Revati Mohite DereView PDF

  87. 31-Jul-2023

    Hon'ble Ms. Justice Gauri Godse,hon'ble Justice Revati Mohite DereView PDF

  88. 17-Mar-2023

    For Admission

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Prakash D. Naik

  89. 17-Feb-2023

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Shri Justice Prakash D. NaikView PDF

  90. 17-Feb-2023

    For Admission

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Prakash D. Naik

  91. 31-Jan-2023

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Shri Justice Prakash D. NaikView PDF

  92. 31-Jan-2023

    For Direction

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Prakash D. Naik

  93. 13-Dec-2022

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Shri Justice Prakash D. NaikView PDF

  94. 13-Dec-2022

    For Admission

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Milind N. Jadhav

  95. 16-Nov-2022

    For Orders-

    Hon'ble Shri Justice S. M. Modak , Hon'ble Justice Revati Mohite Dere

  96. 15-Nov-2022

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Shri Justice Milind N. JadhavView PDF

  97. 12-Oct-2022

    For Admission

    Hon'ble Shri Justice A.S. Gadkari , Hon'ble Shri Justice Milind N. Jadhav

  98. 21-Sep-2022

    Hon'ble Shri Justice A.S. Gadkari,hon'ble Shri Justice Milind N. JadhavView PDF

  99. 21-Sep-2022

    For Admission

    Hon'ble Justice Sharmila U. Deshmukh , Hon'ble Justice Revati Mohite Dere

  100. 26-Aug-2022

    Hon'ble Justice Sharmila U. Deshmukh,hon'ble Justice Revati Mohite DereView PDF

  101. 26-Aug-2022

    For Circulation

    Hon'ble Justice Sharmila U. Deshmukh , Hon'ble Justice Revati Mohite Dere

  102. 12-Mar-2021

    For Orders (Due Matters)

    Hon'ble Shri Justice Manish Pitale , Hon'ble Shri Justice S.S. Shinde

  103. 14-Jan-2021

    —

    Hon'ble Shri Justice Manish Pitale , Hon'ble Shri Justice S.S. Shinde

  104. 13-Jan-2021

    Hon'ble Shri Justice Manish Pitale,hon'ble Shri Justice S.S. ShindeView PDF

  105. 13-Jan-2021

    —

    Hon'ble Shri Justice M. S. Karnik , Hon'ble Shri Justice S.S. Shinde

  106. 04-Jan-2021

    Hon'ble Shri Justice M. S. Karnik,hon'ble Shri Justice S.S. ShindeView PDF

  107. 04-Jan-2021

    First hearing

    Initial hearing scheduled

  108. 15-Dec-2020

    Case filed

    Registration No. APEAL/337/2026

casestatus.in Summary

CASE SUMMARY: APEAL/337/2026 Court: Bombay High Court Date: 8th May, 2026 Judges: Kamal Khata, J. & A.S. Gadkari, J. DECISION The Court SET ASIDE the Sale Certificate dated 31st August 2020 and the auction of properties attached under the MPID Act in connection with the NSEL scam, finding the entire process was riddled with fraud, gross undervaluation, and procedural irregularities designed to benefit a particular bidder. KEY FINDINGS 1. Gross Undervaluation: - Property initially valued at ₹60 crores (May 2018) was subsequently devalued to ₹10.41 crores (June 2020) - Court found this 6-fold reduction unjustifiable and fraudulent - Property deliberately misclassified from "residential" to "agricultural" to suppress value 2. Procedural Irregularities: - First auction notice published only in Chandigarh editions of newspapers (limited local circulation) - Hindi-speaking area received Punjabi-language notices - Subsequent auction notices advertised only on Quiker Realty's website with no publicly available viewership data - No evidence of wide publicity despite statutory requirement 3. Fraudulent Auction Process: - Common director (Rajan Goyal) in both competing bidders: Brij Gopal Construction (₹8 crores) and winning bidder Rudraveerya Developers (₹10 crores) - Auction conducted as sealed bid rather than open auction, limiting competitive bidding - Property location incorrectly described on Quiker website 4. License Issues: - Development license expired December 9, 2016, and was never renewed - First valuation (May 2018) assumed license validity without verification - Court rejected argument that expired license justified reclassification to agricultural land 5. Conflict of Interest: - Quiker Realty appointed as both valuer and auctioneer despite clear conflicts - Failed to conduct site inspection for 2020 valuation - Deliberately misrepresented property characteristics COURT'S REASONING The Court held that: 1. Fraud vitiates all acts – The entire process was "nothing short of a fraud played upon the Court" and 13,000 NSEL victims who lost ₹5,600 crores 2. Fiduciary duty breached – The Competent Authority, entrusted with protecting investors' interests, instead became complicit in undervaluing assets 3. "Scam within the scam" – While original NSEL scam defrauded investors, the subsequent auction process defrauded them again by selling their recovery assets at grossly depressed prices 4. Timing suspicious – Sale finalized during COVID-19 pandemic when land markets were at lowest values 5. Inadequate price is fatal – Even without fraud allegations, gross undervaluation of attached property is sufficient to set aside auction under settled law ORDERS PASSED The Court directed: (a) New Competent Authority to be appointed within 4 weeks (b) New Valuer to be appointed by the new Authority (replacing Quiker Realty) (c) Fresh Auction to be conducted with: - Wide publicity in local newspapers - Electronic media coverage - Open bidding process (d) Sale Certificate set aside (dated 31.8.2020), but attachment continues (e) Refund of ₹10.09 crores received from Rudraveerya Developers within 4 weeks (f) Investigation against Competent Authority members and Quiker Realty; compliance affidavit within 6 months (g) Quiker Realty disqualified for minimum 5 years from conducting valuations/auctions for Maharashtra Government (h) Appeal No.932/2022 (homebuyers) allowed (i) All interim applications disposed SIGNIFICANCE This landmark judgment protects interests of defrauded investors in NSEL scam and establishes that Government authorities cannot become complicit in perpetuating frauds through mala fide valuations and auction processes, even after sale completion. This case analysis is maintained by casestatus.in based on publicly available court records.

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