Developer Arrested for Duping Realtor of ₹4.6 Crore in Mumbai
A Mumbai-based developer has been arrested for cheating a realtor of ₹4.6 crore in a redevelopment project.
RealtorDeveloperCheatingFraudMumbaiReal EstateReal Estate NewsMay 29, 2024
The contract, worth ₹4.6 crore, was signed between Jain and Richa Realtors in 2010. The project involved the redevelopment of a housing project of MHADA colony at PMJP colony in Mulund east. The colony had 56 MHADA buildings on 1.20 lakh square meters area with 1,470 tenants. Richa Realtors had signed a development agreement to rehabilitate the tenants.
However, Jain failed to keep his commitment and only removed 36 illegal hutments, wasting several years. Despite taking ₹4.6 crore in installments between May 2011 to April 2013, Jain did not fulfill his obligations. This led to Richa Realtors facing a penalty of ₹89.98 crore imposed by Tata Housing Development Company, their partner company.
Umesh Kambli, vice president of Richa Realtors, had lodged a complaint in 2007, which ultimately led to Jain's arrest. The Navghar police produced Jain before the local court, which remanded him to police custody.
The real estate sector in Mumbai has been plagued by cases of cheating and fraud. This recent arrest is a significant step towards bringing defaulters to justice. The sector has been witnessing a slowdown in recent times, and such cases of cheating can further dent investor confidence.
Richa Realtors is a leading real estate company in Mumbai, known for its redevelopment projects. Tata Housing Development Company is a prominent real estate developer in India, with a presence in multiple cities. Balaji Developers is a Mumbai-based real estate company that has been involved in several redevelopment projects.
Frequently Asked Questions
What was the contract worth between Richa Realtors and Balaji Developers?
The contract was worth ₹4 6 crore
What was the purpose of the contract?
The contract was for removing illegal encroachments leveling soil and putting up a fence for further development
Why was Dinesh Jain arrested?
Dinesh Jain was arrested for cheating and forgery
What was the penalty imposed on Richa Realtors by Tata Housing Development Company?
The penalty imposed was ₹89 98 crore
What is the current state of the real estate sector in Mumbai?
The sector has been witnessing a slowdown in recent times and cases of cheating and fraud can further dent investor confidence
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