Mumbai court remands Hubtown MD and three others to police custody until February 12

MUMBAI: A special court in Mumbai has remanded Vyomesh Shah, managing director of realty developer Hubtown, or erstwhile Ackruti City, and three others to police custody until Friday, February 12. Shah and three others were arrested by the state CID on Monday evening.

These arrests were made in connection with the alleged financial fraud in a state-government-controlled company Lok Shahir Annabhau Sathe Development Corporation, meant for a certain community and its sub-castes.

The issue centers around an 800 sq meter plot in South Mumbai’s Pedder Road locality. One of Hubtown’s subsidiaries had sold this plot to Ramesh Kadam, then Chairman of the corporation in 2014 for Rs 106 crore. The value of the plot was shown as Rs 40 crore in the sale agreement.

The money was allegedly siphoned off from the corporation to three privately held entities. These three companies then paid the consideration for the plot on behalf of Kadam.

According to reports, Ramesh Kadam, MLA from Solapur, was arrested in August 2015 by the state CID in connection with misappropriation of funds and financial irregularities in the Lokshahir Annabhau Sathe Development Corporation worth several crores. Kadam was chairman of the corporation between 2010 and 2014, when the alleged irregularities of funds took place.