Developer Arrested for ₹4.6 Crore Cheating Scandal in Mumbai Real Estate
A Mumbai-based developer has been arrested for cheating a realtor of ₹4.6 crore. The developer had failed to fulfill his commitment to remove illegal encroachments and develop a plot.
Mumbai Real EstateCheatingDeveloper ArrestedRicha RealtorsTata Housing Development CompanyReal Estate MumbaiMay 29, 2024
However, Jain failed to keep his commitment and only removed 36 illegal hutments, despite taking ₹4.6 crore in installments between May 2011 to April 2013. The deception was discovered when Richa Realtors approached Tata Housing Development Company for financial assistance in 2010. The two companies decided to jointly develop the plot, but Jain's failure to fulfill his obligations led to a penalty of ₹89.98 crore being imposed on Richa Realtors by Tata Housing.
Umesh Kambli, vice president of Richa Realtors, had lodged a complaint against Jain and Balaji Developers in 2007, resulting in Jain's arrest on charges of cheating and forgery. The Navghar police produced Jain before the local court, and he was remanded to police custody.
Richa Realtors had taken over the redevelopment of a housing project of Mhada colony at PMJP colony in Mulund east, which consisted of 56 Mhada buildings on 1.20 lakh square meters area with 1,470 tenants. The company had signed a development agreement to rehabilitate tenants, but the project was stalled due to Jain's deception.
Richa Realtors is a prominent real estate company in Mumbai, known for its redevelopment projects. Tata Housing Development Company is a leading real estate developer in India, with a presence in several cities.
Frequently Asked Questions
How much money was involved in the cheating scandal?
₹4 6 crore
What was the purpose of the contract between Richa Realtors and Balaji Developers?
To remove illegal encroachments/hutments level soil and put up a fence for further development of a plot in Mulund east
What penalty was imposed on Richa Realtors by Tata Housing Development Company?
₹89 98 crore
What is the name of the developer who was arrested?
Dinesh Jain
What is the name of the real estate company that lodged a complaint against Jain and Balaji Developers?
Richa Realtors
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