The Criminal Investigation Department has approached the Serious Fraud Investigation Office, requesting them to share the report on Bangalore-based Megacity Developers and Builders Ltd.

“The CID has asked us to share the report with them. We are awaiting the (Corporate Affairs) Minister's nod to send it across,” an SFIO official told Business Line .

The State would take action against the company based on the SFIO report, Mr Veerappa Moily, Minister for Corporate Affairs reportedly, said.

The SFIO in its report has recommended criminal prosecution of Mr C.P. Yogeshwar, Managing Director of Megacity, and other directors for corporate fraud, forgery, criminal conspiracy and cheating.

The CID and SFIO separately investigated complaints against Megacity, which is owned by Mr Yogeshwar, who is also the Forest Minister of Karnataka. It was found that 450 sale agreements had been forged to show that Rs 37 crore was paid for purchasing land.

Based on its findings, the CID prepared a charge-sheet, for which a case is going on in the trial court.

SFIO investigated the matter independently and found that the company had not only raised money unscrupulously but also siphoned off parts of it. Mr Yogeshwar had accumulated three Directors Identification Numbers under different names, swindled money from the company account and falsely promised land to prospective buyers in his projects.

“Some of the survey numbers did not exist. Land deeds for Vajragiri Township project were made out under fictitious names or under names of dead people,” said an official.

“Though the charges are similar, the case cannot be carried out in two courts. We will collaborate with the CID and figure out how to go about it,” said an MCA official.

Meanwhile, Megacity submitted its reply to the Ministry. In its defence, the company said that the tehsildars from whom the SFIO collected information were lying.

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