A Delhi court has directed that criminal proceedings against M3M India and its leadership proceed over allegations of cheating and conspiracy. The case involves a Gurugram land dispute with MGF Developments. While the court dismissed criminal breach of trust charges, the trial will move forward on other counts, with key executives summoned to appear before a magistrate on October 27, 2026.
A Delhi court has ruled that criminal proceedings against M3M India Pvt Ltd and several group entities will continue, marking a significant development in a long-standing land dispute in Gurugram. Principal District and Sessions Judge Anju Bajaj Chandna rejected a plea to quash charges related to cheating and criminal conspiracy. The case, which has been under scrutiny, involves accusations that the developer obtained land rights through exchange deeds without fulfilling agreed-upon financial obligations.
The litigation began with a complaint filed by MGF Developments Ltd. According to the prosecution's case, the dispute arose from an agreement to swap land in Chauma for property in Mohammadpur Gujar, involving additional payments. MGF Developments alleged that post-dated cheques provided by the M3M entities were dishonoured. The complainant further asserted that the developers proceeded to mutate the land and secure development licenses for a residential project while the payment dispute remained unresolved, causing financial distress.
While the court allowed the trial to move forward under Section 420 (cheating) and Section 120B (criminal conspiracy) of the Indian Penal Code, it provided some relief to the petitioners. The judge set aside the cognizance taken for criminal breach of trust under Section 406. The court reasoned that the essential requirements for this specific charge, such as the entrustment of property, were not met because the transfer was executed via formal exchange deeds rather than through an implied relationship of trust.
For real estate developers, legal disputes involving land titles or payments often create significant uncertainty. In the Indian property market, land acquisition is the fundamental step for any project. Any ambiguity regarding ownership or contractual obligations can impact project timelines, regulatory approvals, and investor confidence. When such disputes enter the criminal courts, it adds a layer of complexity for management, as they must dedicate resources to legal defense while managing ongoing construction and business operations.
The court declined to delve into the defense's argument that the dispute is purely a civil or commercial matter, leaving those arguments to be addressed at the next stage. The court directed company leadership, including Basant Bansal, Roop Kumar Bansal, and Pankaj Bansal, to present their arguments before the Chief Judicial Magistrate. The parties have been ordered to appear on October 27, 2026, for the formal framing of charges. The court has also instructed the lower judicial authority to prioritize the matter and expedite the proceedings.