The case involved investments worth ₹2.51 crore allegedly made by members of a family and two companies (appellants) in connection with a proposed resort project in Maharashtra’s Tadoba.
According to the appellants, the respondents had induced them to invest money by promising 24 per cent annual interest payable quarterly. The amounts were to be repaid by December 31, 2019.
When the money was not repaid, the appellants initiated multiple legal proceedings, including summary civil suits, cheque dishonour proceedings and attempts to initiate criminal proceedings under the Indian Penal Code.
After failing to secure registration of FIRs for offences including cheating and criminal breach of trust, the appellants invoked the MPID Act and sought action under Section 3 of the statute dealing with fraudulent default by financial establishments.
