High Court Exposes Politicians' Influence on Real Estate Promoters
The Madras High Court has observed that some politicians and political intermediaries exert undue influence over real estate promoters, often leading to criminal intimidation and fraudulent practices. This was noted while dismissing the bail plea of a couple arrested for cheating and threatening a real estate promoter in Madurai.
The court was hearing the bail petition filed by Jai Balaji and his wife, Kalavathi, who were arrested by the Central Crime Branch of Madurai city police in February. The complainant, Seetharaman, a real estate promoter, had initiated a layout development project near Ponmeni in Madurai in 2024. Jai Balaji allegedly approached Seetharaman, claiming to wield considerable political influence and to have close ties with the former mayor of Madurai Corporation and her husband.
Balaji also claimed to be the personal assistant to a sitting minister. He assured Seetharaman of obtaining the necessary permissions and infrastructural facilities required for the project, including underground sewage connection, common road access, and drinking water connection. In exchange, Balaji obtained a sum of 50 lakh from the complainant and secured the sale deeds for two flats at a significantly reduced value in his and his wife's names.
When Balaji failed to fulfill his promises, Seetharaman lodged a police complaint, leading to the arrest of the couple. Justice K K Ramakrishnan observed that some politicians and political intermediaries compel promoters to pay illegal gratification and force them to execute and register sale deeds for a meager consideration. However, after obtaining the registration, these individuals allegedly fail to fulfill the promises made at the time of the sale deed's execution.
The petitioners projected themselves as close associates of the then mayor of Madurai Corporation, using this purported political influence to extract money from the complainant and obtain sale deeds for consideration far below the market value. The judge also noted that following the registration of the criminal case, the petitioners allegedly instigated their associates to threaten the complainant to withdraw the complaint, leading to the registration of another FIR.
Balaji is also involved in another economic offense involving large-scale cheating of the public. Considering the objections raised by the prosecution and the fact that the investigation is at a nascent stage, the judge dismissed the couple's bail petition. The court was also hearing the anticipatory bail petition of the associates of the couple - Saravanasundar, M Ramakrishnan, P S S Bagyalakshmi, and A Nagalingam. They allegedly trespassed into the house of the complainant and criminally intimidated him to withdraw the complaint.
This case highlights the broader issue of political influence and corruption in the real estate sector, where unscrupulous individuals exploit their connections to extort money and property from developers. The Madras High Court's observations serve as a warning to both real estate promoters and politicians, emphasizing the need for transparency and accountability in such transactions.
