Luxury Flat Fraud: Pune Builder in Trouble as Bail Rejected in Rs 85 Crore Project Dispute
Pune, 30th June 2025: In a major development in a high-value real estate fraud case, the Pune Sessions Court has rejected the anticipatory bail application of Umesh Armugam Pillay (58), a prominent city-based developer. The order was passed by Additional Sessions Judge K.P. Kshirsagar on June 25, denying relief in connection with FIR No. 210/2025 registered at Wanorie Police Station under multiple serious sections of the Bharatiya Nyaya Sanhita (BNS), 2023.
Pillay, co-founder of the real estate firm Cedrus Assets Association of Partners, stands accused of cheating, criminal breach of trust, forgery, extortion, and criminal intimidation, among other charges under Sections 318(3), 316, 308, 303(1), 303, and 270 of BNS.
FIR Registered After Eight-Month Investigation
The complaint, originally submitted to Pune Police Commissioner Amitesh Kumar on October 17, 2024, was filed by businessman Manoj S. Mittal, also a partner in the Cedrus firm. The case was handed over to Senior Police Inspector Satyajeet Admane of Wanorie Police Station, following which a detailed investigation spanning nearly eight months led to the registration of an FIR on May 20, 2025.
The core of the dispute concerns the alleged misappropriation of funds and fraudulent dealings related to three high-end flats—Flat Nos. 303, 403, and 501—in the premium Panache residential project at Sopan Baug. Each apartment is valued at over ₹5 crore.
Accusations of Forgery and Financial Misappropriation
Flats 303 and 403 were allegedly sold to Dubai-based crypto investor Sushant Malik and his wife Ruksher, with over ₹4 crore reportedly transferred. However, no registered sale deeds exist to date. Malik filed a separate police complaint on February 15, 2025, alleging fraud and cheating.
Similarly, Flat No. 501 was purchased by Farhat Husain Qureshi, a retired Chief Income Tax Commissioner, and his wife, Dr. Gazala Shabnam Qureshi. That transaction also remains unregistered.
According to the prosecution, Pillay diverted ₹2.17 crore from one of the transactions into his personal account without the knowledge of the firm’s other partners. He is also accused of forging the signature of Nilesh Bajaj, who represents the remaining 27 partners via Power of Attorney, and submitting falsified documents in court to seek bail.
Defence Argument and Court Findings
Pillay’s legal team, led by Advocate Sudhir Shah and Advocate Rana Gaurav Tejpal, argued that all transactions were known to the partners and that Pillay had no intention to cheat. An affidavit filed on June 11 stated that Pillay was willing to deposit the disputed amount in the firm’s account within ten days.
However, Judge Kshirsagar observed that despite this claim, there was prima facie evidence of fraudulent intent, including misappropriation of funds and interference in the administration of justice through forged documents. The court also noted that Pillay had switched off his phone and was untraceable since the FIR was filed.
Custodial Interrogation Necessary: Court
The court concluded that the gravity of the offences, the forged documents submitted to the court, and the potential for tampering with evidence justified the need for custodial interrogation. “Bail applications must be decided on legal merit, not private settlements,” the court stated, while rejecting the application.
While Pillay recently deposited ₹2.17 crore in the firm’s account, the court held that this act did not override the seriousness of the offences.
