Hyderabad, May 20, 2024: In a move that will bring relief to potential homebuyers, the Cyberabad police have arrested three individuals for allegedly duping investors of a staggering Rs 60 crore in a real estate fraud case.
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Modus Operandi:
The accused, identified as Dupati Nagaraju (Chairman), Mulpury Shivarama Krishna (Managing Director), and Thoddakula Narsimha Rao (CEO) of Bharathi Builders, a partnership firm, are charged with cheating and violating the Telangana Protection of Depositors of Financial Establishments Act (1999).
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The investigation revealed that the trio lured investors with the promise of constructing residential apartments in their project named “Bharathi Lake View” located in Kompally, Medchal-Malkajgiri district.
Investor Allure:
The builders reportedly made enticing offers through pre-launch schemes, attracting a large pool of investors. A significant number of investors, possibly close to 350, collectively invested a sum of Rs 50-60 crore in the project.
Broken Promises:
However, instead of fulfilling their commitment to construct the apartments, the builders allegedly sold the entire land parcel to another party, leaving investors in the lurch. This fraudulent act not only resulted in financial losses but also dashed the hopes of homeownership for many.
Justice Served:
Following complaints from aggrieved investors, the Economic Offences Wing (EOW) of Cyberabad police initiated a thorough investigation. The probe led to the arrest of the three accused on May 17, 2024.
A Cautionary Tale:
This incident serves as a stark reminder for potential homebuyers to exercise caution and conduct due diligence before investing in any real estate project. Here are some recommended steps:
- Verify Credentials: Always verify the builder’s reputation, track record, and legal approvals for the project.
- Scrutinise Documents: Meticulously examine all legal documents, including land ownership papers and project approvals.
- Beware of Pre-Launch Offers: Approach pre-launch schemes with caution and understand the associated risks.
- Seek Expert Advice: Consider consulting a lawyer or real estate professional before finalising any investment.
Positive Impact:
The swift action by the Cyberabad police establishes a strong message of deterrence against fraudulent practices in the real estate sector. This will likely instill confidence among potential homebuyers and contribute to a more transparent and ethical real estate market in Hyderabad.
