Real Estate

Mumbai Builder, Wife Face Trial in ₹28 Crore Homebuyer Fraud

By GeoSquare News Desk · Published 2026-10-06

A Mumbai court has ruled that developer Ornate Spaces, its promoter Vijay Machinder, and his wife must face trial in connection with an alleged ₹28 crore fraud linked to the Grove Tower project. The case relates to homebuyer complaints that funds were collected without delivery of property, triggering criminal proceedings.

Legal Provisions Invoked

The trial will examine charges under Section 420 of the Indian Penal Code, which deals with cheating and dishonest inducement to deliver property. Sections 406 and 409, covering different forms of criminal breach of trust, have also been invoked. These provisions carry serious consequences and reflect the gravity of the allegations.

What This Means for Homebuyers

For Maharashtra homebuyers, the case underscores the importance of verifying project status and developer track record before investing. While RERA provides a regulatory remedy, criminal prosecution remains a key tool for buyers seeking accountability in cases involving alleged diversion of funds or fraudulent inducement.

As the trial progresses, the outcome could set a precedent for how similar homebuyer grievances are treated by courts. Legal experts say timely action and documentation of payments will be critical for affected buyers.