Yusuf Lakdawala, a prominent figure in the construction and finance sectors, found himself embroiled in a money laundering case, leading to his arrest by the Enforcement Directorate (ED). Tragically, while in custody at Arthur Road Jail, Yusuf Lakdawala passed away in September 2021. However, amidst these events, attention shifted to Yusuf's stepson, Firoz Lakdawala, who faced accusations of share manipulation. Mumbai Police's Economic Offences Wing (EOW) took action following a complaint lodged by Sabina Lakdawala, Yusuf's wife. The complaint prompted the registration of cases under 406, 420, 34, and 120 sections of the Indian Penal Code against Firoz, his wife Noori, and others involved.
The investigation conducted by the EOW uncovered a complex scheme allegedly orchestrated by Firoz Lakdawala, along with his wife and accomplices. They were accused of orchestrating a criminal conspiracy involving the issuance of share capital in ten private limited companies. Notably, these companies included ones where Sabina's deceased husband held a majority stake, yet allegedly, he was deprived of his shareholder rights. It was revealed that no board meetings were convened, nor were any notices issued for partnerships or account openings. Particularly concerning was the issuance of rights at values significantly below 100 times the fair market value.
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This maneuvering reportedly resulted in a substantial reduction of the deceased father's and Sabina's shareholdings, causing a loss exceeding 45 crore rupees. Consequently, Sabina Lakdawala approached the Economic Offences Wing, leading to the initiation of a case following a preliminary investigation.