BELA M. TRIVEDI, J. 1. Leave granted. Digitally signed by VISHAL ANAND Date: 2024.02.13 15:34:30 IST Reason:

Signature Not Verified

2. The appellants being aggrieved by the interim orders dated 13.07.2023, 08.08.2023 and 13.09.2023 passed by the High Court of Judicature at Allahabad in Criminal Misc. Writ Petition Nos. 10893/2023, 11837/2023 and 14053/2023 respectively, have preferred the instant appeals. Vide the impugned orders, the High Court has stayed the proceedings of the FIRs registered against the concerned respondents-accused as also stayed the proceedings of ECIR No.-ECIR/HIU-I/06/2023 registered by the Directorate of Enforcement against the concerned respondents, and further directed not to take any coercive action against the said respondents pending the said writ petitions. All the appeals being interconnected with each other, they were heard together and it would be appropriate to decide them by this common judgment.

3. The respondent India Bulls Housing Finance Limited (IHFL) is a non- banking financial institution incorporated under the provisions of the Companies Act. IHFL deals with the public money. The major source of funds for the loans to be advanced by IHFL, is either the loans from the other banks or from the public in the form of non-convertible debentures. The respondents Niraj Tyagi is the President (Legal) and Reena Bagga is the authorized officer of the IHFL.

4. M/s Kadam Developers Pvt. Ltd. (hereinafter referred to as M/s Kadam) was one of the Shipra Group entities. M/s Kadam had a sub- lease of a parcel of land admeasuring 73 acres in Sector 128, Noida, which was allotted to it by the predecessor of Yamuna Expressway Industrial Development Authority (hereinafter referred to as the YEIDA). The 100% equity shares of M/s Kadam were held by Shipra Estate Limited (98%); Mohit Singh (1%) and Bindu Singh (1%).

5. Between 2017-2020, IHFL had sanctioned 16 loan facilities to the tune of Rs. 2,801 crores to the Shipra Group/ Borrowers comprising of Shipra Hotels Ltd., Shipra Estate Ltd. and Shipra Leasing Pvt. Ltd. for the purposes of the construction and/or development of Housing/Residential Projects. Against the said sanctioned loan, a sum of approximately 1995.37 crores was disbursed. The financial assistance was secured by the Shipra Group by executing 22 pledge agreements whereby the shares of various companies were pledged in favour of IHFL. A pledge agreement was also entered into by Shipra Groups and M/s Kadam with IHFL pledging 100% equity shares (dematerialized) of M/s Kadam to secure the loan. The mortgaged properties also included 73 acres of land at Noida that had been sub- let to M/s Kadam by YEIDA, and the property called ‘Shipra Mall’ in Ghaziabad.

6. There being defaults in the repayment of loan amount, IHFL had issued notices recalling all the loans advanced to the Shipra Group amounting to Rs. 1763 crores (approx.). The said notices came to be challenged by the Shipra Group before the Delhi High Court, by filing FAO(OS) COMM 59/2021. The Delhi High Court vide order dated 16.04.2021 recorded that IHFL could proceed further with the recovery proceedings, however the sale of shares should be done at a fair market value and in a transparent manner. It appears that a series of litigations under the SARFAESI Act before the DRT and High Court had ensued between the parties.

7. IHFL on 01.07.2021 ultimately sold the shares of M/s Kadam pledged with it to one Final Step Developers P. Ltd., a subsidiary of M3M India P. Ltd. for Rs. 750 crores. Since Final Step Developers (earlier known as M/s Creative Soul Technology P. Ltd) had no source of funds of its own, the funds to purchase the shares of M/s Kadam were provided to the Final Step Developers by the M3M India, which managed to take loan from the IHFL on the same day i.e. 03.07.2021. Thus, the purchase of shares of M/s Kadam by Final Step from the IHFL was funded by the IHFL itself. The mortgaged properties-Shipra Mall at Gha