The applicants sought to overturn a magistrate’s order that had directed Bandra Police to investigate the allegations. The trust, represented by Prashant Mehta through power of attorney holder Dinanath Sawant, had accused the individuals of acting as trustees to siphon crores of rupees in cash, throwing the trust into severe financial difficulties. Mumbai: A sessions court on Friday dismissed multiple criminal revision applications filed by Ayushman Mehta, Nimesh Sheth, and Chetan Mehta, clearing the way for a police investigation into alleged financial misconduct and harassment concerning the Lilavati Kirtilal Mehta Medical Trust.
Seeking recourse, the trust submitted formal complaints to the senior inspector of Bandra police station on Jan 25, 2025, forwarding copies to the assistant, deputy, and joint police commissioners in the following days. Consequently, police registered formal criminal cases in late May 2025. After calling for a police report, which confirmed no action had been taken due to an alleged lack of evidence, the magistrate directed the police to investigate. Dismissing the revision applications, the judge ruled that there was compliance with the mandatory provisions of law and, therefore, the order of the magistrate was well within the jurisdiction. Therefore, no interference is required.
The applicants subsequently challenged the magistrate’s directive, arguing the disputes were civil matters involving trust accounts and that mandatory legal compliances were ignored. However, Additional Sessions Judge Kunal Dhanaji Jadhav noted the complainant had properly filed an affidavit supporting the claims and had adequately informed higher police officials before approaching the magistrate.
When Bandra police failed to initiate action or register a case, the trust filed a complaint before the judicial magistrate.
Punjab National Bank assigned the trust’s debt to Beautiful Group, which entered into consent terms involving Splendor Gems handing 14 blank cheques to Phoenix Arc. The case originated from finances the accused allegedly borrowed from Global Trust Bank, which merged into Oriental Bank of Commerce, then amalgamated with United Bank of India, and ultimately became Punjab National Bank . Consortium banks subsequently auctioned properties for recovery through a Debt Recovery Tribunal officer. Following the settlement, Phoenix Arc continued execution proceedings alongside legal actions initiated by HDFC Bank and the accused, creating chaotic documentation to obstruct legitimate trustees. The complainant alleged this prolonged litigation and intimidation constituted a conspiracy to threaten the trust and the family, subjecting Kishor Mehta and Rajesh Mehta to immense mental torture.