The Directorate of Enforcement (ED) acted on January 3, 2024, in a noteworthy step concerning the Oshiwara Project fraud case, by arresting Vijay Machinder, a director of M/s Ornate Spaces Pvt. Ltd., in accordance with the Prevention of Money Laundering Act (PMLA), 2002.
An official complaint from Mumbai, Maharashtra’s Oshiwara Police Station initiated the ED’s intervention. According to the complaint, Vijay Machinder committed fraud in connection with the Oshiwara Project while serving as a director and constructor of M/s Ornate Spaces Pvt. Ltd. Vijay Machinder allegedly received large sums of money as flat booking fees between 2012 and 2019, misused these monies, and deceitfully cheated several flat buyers out of a total of Rs. 74 crore.
According to the ED’s probe, M/s Ornate Spaces Pvt. Ltd. signed a development agreement in 2010 for a contested plot that MHADA had originally given to employees of United Trust of India. It is alleged that Vijay Machinder and his family took advantage of the situation by taking bank loans secured by the Oshiwara Project’s sellable component and accepting prepayments. A total of Rs. 93.44 crore was raised from different apartment buyers.
Furthermore, it has been alleged that Vijay Machinder obtained loans totalling Rs. 710 crores, of which about Rs. 470 crores remain unpaid. Even with significant funding raised, the Oshiwara Project’s construction has not moved past the excavation stage.
A troubling aspect of Vijay Machinder’s actions has been revealed by the investigation, demonstrating his affiliation with anti-social elements. Beyond the financial issues, there is evidence of his purported criminal past. He is notably paired with Arif Abubakar Shaikh, popularly referred to as Arif Bhaijaan, who is related to Chota Shakeel, known as the right hand of Dawood Ibrahim.
This partnership’s involvement in two projects that Machinder’s company initiated adds complexity to the continuing investigation into possible links between his business endeavours and organized crime.
Given these conclusions, Vijay Machinder was placed under arrest and given ED custody till January 12, 2024, by the Hon’ble Special PMLA Court in Mumbai. Vijay Machinder was presented before the Hon. Special PMLA Court in Mumbai. The Honorable Court has granted ED custody of Vijay Machinder till December 1, 2024, so that additional interrogation can take place. Further investigation is under progress.
