MGF-M3M Case Latest Update: Punjab & Haryana High Court stops MGF, M3M from creating third-party rights over disputed land in Gurugram

The Punjab and Haryana High Court, Chandigarh, while adjudicating on an appeal filed by MGF Developments Ltd. against M3M India Pvt. Ltd. Group, has ordered that till the final disposal of the appeal, both the parties – MGF and M3M – cannot create any third-party rights over the disputed property.

What is court's direction in MGF, M3M case?

M3M Group has been restrained from creating any third-party rights (such as sale, booking, agreement, etc.) on 31 acres land at Chauma village, Gurugram.

The land is located in Sector 113, Gurugram, where 8 projects are currently under construction:

The projects are-

M3M Capital Phase 1
M3M Capital Phase 2
M3M Capital Phase 3
Smartworld One DXP
Smartworld One DXP Street
Smartworld One DXP Phase 2
M3M Mansion
M3M Mansion Phase 2

Background of the case

MGF alleges that subsidiary companies of M3M India Pvt Ltd did not make any payment for land swap under a decree (Civil Suit No. 160 of 2016).

As per this decree, M3M's subsidiary companies had struck a deal for the land in Chauma village and executed several deeds, which would be valid only if the post-dated cheques (given by M3M) were cleared in full.

But since these cheques bounced, all the deeds automatically got cancelled/terminated.

MGF's allegations

Despite this, M3M got the land mutated on the basis of cancelled deeds by misleading officials and then started projects after taking licence on it.

Conclusion

Now the High Court has ordered that until a final decision is taken on MGF’s appeal, no party can create third-party rights on the disputed land — that is, there will be a complete ban on sale, booking, lease, etc.