The Bombay High Court has transferred the JSL Realty case investigation from the Economic Offences Wing (EOW) to the Mumbai Crime Branch, following serious concerns over misconduct and abuse of power by the investigating officer. The order for transfer was issued by the Director General of Maharashtra Police after the High Court raised alarm over the officer’s questionable actions and disregard for procedural fairness.
A division bench comprising Chief Justice Shree Chandrashekhar and Justice Gautam A. Ankhad was hearing a petition filed by IIFL, during which it discovered that the same officer, who had earlier been reprimanded for a wrongful arrest in another case, was still handling the JSL Realty investigation. The court found this highly irregular and indicative of poor oversight within the investigating agency.
The controversy deepened when the court reviewed the arrest of Mamta Singh, one of the accused in the case, who had been taken into custody by the EOW on September 10. The bench noted glaring inconsistencies in her arrest — her statement had been recorded on June 18, but she was arrested almost three months later without proper reasoning. The judges questioned the timing and necessity of the arrest, pointing out that it occurred while Singh was hosting a birthday celebration for her specially-abled child. Unlike other accused persons, she had not been given subsequent notices or opportunities to cooperate with the investigation, suggesting possible bias and selective targeting by the officer.
The bench observed that there were no clear records of searches or evidence recovery from the petitioner’s premises and that the delay in arrest violated the principles of procedural fairness. It stressed that the power to arrest is not absolute, referencing Section 41(1)(b)(ii) of the Code of Criminal Procedure (CrPC), which mandates that arrests must be necessary — such as preventing further offenses, tampering with evidence, or influencing witnesses — and should not be executed arbitrarily.
During the hearing on September 23, the High Court had even hinted at suspending the officer involved. However, to the court’s dismay, the same officer continued to issue summons as late as September 29, directly defying the spirit of the court’s earlier observations. The bench expressed frustration at the prosecution’s inaction and questioned why the officer had not been replaced despite explicit court directions.
Additional Public Prosecutor Mankuwar Deshmukh informed the bench that the court’s observations had been forwarded to the Joint Commissioner of Police. Unsatisfied, the court demanded a formal response and warned that if compliance was not ensured, it might initiate proceedings against senior police officials for contempt or negligence.
Subsequently, Deshmukh produced an official order from the Maharashtra DGP confirming that the entire investigation had been handed over to the Mumbai Crime Branch. The order also directed the initiation of an internal inquiry against the officer by a senior police official of Additional Commissioner rank to assess the alleged procedural violations and misconduct.
The underlying dispute in the JSL Realty case stems from a complaint filed by businessman Rajat Jhunjhunwala, who accused the suspects of executing a fraudulent transfer of ownership in Shajas Developers Pvt. Ltd. and its subsidiary JSL Realty Pvt. Ltd. Jhunjhunwala alleged that forged documents and fake share certificates were used to unlawfully strip him of his stake in the companies.
With the investigation now under the Mumbai Crime Branch’s purview, the High Court has sought to ensure greater transparency, accountability, and adherence to due process in the handling of the case. The inquiry against the officer marks a significant move by the judiciary to uphold judicial integrity and protect citizens from arbitrary misuse of power by investigative authorities.
