Court Upholds Criminal Proceedings

Delhi court confirmed cheating and criminal conspiracy charges against M3M and its promoters in a ₹450 crore land fraud case.

“The impugned order to the extent that it has taken cognizance of cheating under Sections 420/120/34 IPC should not be interfered with at this stage”

Land Fraud Case Background

MGF Developments Ltd filed a complaint that M3M obtained rights to 31 acres of land in Chauma village, Gurugram without full payment under a land exchange agreement.

Transaction Details

The land exchange agreement required ₹114 crore payment, with ₹16.30 crore paid upfront and ₹98 crore in post-dated cheques that were returned unpaid in 2018.

Land Mutation Without Payment

Accused companies mutated disputed land in their names and applied for development licenses despite outstanding payment to MGF.

Legal Challenge by M3M

M3M argued MGF lacked legal standing to file the complaint and that the dispute was civil in nature arising from contractual obligations.

Court's Decision on Cognisance

Court dismissed revision petitions challenging the trial court's January 31 order taking cognizance of offences under IPC Sections 420, 120-B, and 34.

“The impugned order dated january 31, 2026 to the extent of taking cognizance under section 406 ipc is not sustainable in law as the elements of the offence of breach of trust are not made out”

Next Steps for Trial

Accused must appear before chief judicial magistrate on October 27 with trial court instructed to proceed expeditiously.

Court's Ruling on Civil Nature

Court noted issues regarding complainant's standing and civil nature of dispute require magistrate consideration at appropriate stage.

Ongoing Proceedings

Several civil proceedings between parties remain while criminal proceedings continue on cheating and conspiracy allegations.