Nagpur: In a significant development in the long-pending Mahadeo Land Developers fraud case, the Nagpur Bench of the Bombay High Court has been informed that the process of refunding money to investors will commence from June 30, 2025. The official liquidator, appointed to oversee the recovery and disbursal of funds, provided this update during a recent hearing.
The case pertains to Mahadeo Land Developers, which had promised attractive monthly incentives to investors in exchange for fixed deposits under its schemes. However, the company failed to honour these promises, prompting Sanjay Nimbulkar and 47 other investors to approach the High Court seeking relief.
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17 June 2025
During the hearing, the official liquidator informed the court that so far, 49 properties belonging to the company have been auctioned. Out of these, 31 properties remain unsold, while the auction process has generated Rs 2.59 crore. In addition, the company has received Rs 6.70 crore from other sales, of which Rs 5 crore has been deposited in the dividend account for distribution to creditors.
The court has now directed the liquidator to submit a detailed report regarding the refund process by July 4, 2025.
Income Tax Department’s claim rejected
The Income Tax Department had earlier staked a claim for preferential payment under Section 530 of the Companies Act, 1956. However, the liquidator’s legal counsel informed the court that there is no valid preferential claim made by the department as per the provisions of the Act.
The High Court has ordered that this decision be formally communicated to the Income Tax Department through their legal representative.
Further property sales on the cards
The liquidator’s counsel further informed the court that efforts are underway to sell the remaining 31 properties. Advertisements will soon be published in newspapers to invite buyers, following due process under the Companies Act, 1956. The court has also directed that a complete list of properties already sold be placed on record.
According to the liquidator, 2,931 claims from investors have been received to date. Of these, 2,021 claims have been verified and settled. The remaining claims are under scrutiny, as many are based on photocopied documents. Investors have been instructed to submit original documents for verification to ensure eligibility for refunds.
It may be recalled that in 2011, Mahadeo Land Developers director Pramod Agrawal masterminded a massive investment scam, duping over 3,000 to 4,000 people, including daily wage earners, to the tune of Rs 500 crore through fraudulent schemes under Mahadeo Land Developers and the Kalamna Society. Agrawal lured innocent investors with promises of land and hefty returns, only to defraud them of their hard-earned savings.
The recent court developments have rekindled hope among the victims, who have waited over a decade for justice and the recovery of their investments.
