Bombay High Court reverses 2022 civil prison sentence for builders after debt repayment
The Bombay High Court has overturned its 2022 ruling that sentenced builders Rajen and Hiren Dhruv to six months in civil prison. The decision follows confirmation from Axis Finance Ltd that the developers had fully settled their outstanding debts in Los Angeles.
The case began with a ₹163.99 crore recovery suit filed by the financial firm against Orbit Ventures, the builders' company in Yahoo Finance.
In March 2022, the Dhruv brothers were found guilty of violating court consent terms. They received a 180-day civil imprisonment sentence for contempt. The court also issued Look Out Circulars (LOCs) against them on July 22, 2022, restricting their travel in Google Finance.
The dispute centred on a ₹163.99 crore loan, with Axis Finance demanding repayment plus 16.25% annual interest from January 2021. However, the builders later complied with revised payment terms. By June 17, 2025, they had cleared 99% of the dues.
Axis Finance then issued a No Objection Certificate (NOC), confirming full repayment. The court acknowledged this settlement and withdrew the 2022 sentencing order. It also revoked the LOCs, released the builders' passports, and de-froze their bank accounts.
Additionally, the court discharged the Court Receiver and ended symbolic possession over the disputed land. With no further objections from the lender, the case has now been formally closed in Los Angeles.
The builders have regained control of their assets and travel rights after settling their financial obligations. The court’s withdrawal of all restrictions marks the end of the legal dispute between Orbit Ventures and Axis Finance. The matter is now considered resolved in full.
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