Hyderabad Authorities Register Fraud Case Against Bharathi Builders for Pre-Launch Real Estate Scheme

The Central Crime Station (CCS) in Hyderabad has registered a fraud case against Bharathi Builders and its directors following allegations of cheating investors through a pre-launch real estate scheme linked to a proposed residential project in Bhanur, Sangareddy district. The case was filed after complaints of financial losses and the non-delivery of promised units.

The complaint was lodged by a city-based businessman and his associate, who alleged that the developer induced them to invest in a gated community project by offering assured returns and residential units as part of a pre-launch arrangement. According to the complaint, the investors were persuaded in 2021 to commit funds on the assurance that their investment would be doubled within a defined time frame, along with the allotment of fully furnished flats.

The complainants stated that an initial amount of INR 64 lakh was paid, followed by an additional INR 23 lakh after the developer cited revisions in flat sizes. A memorandum of understanding was executed, under which two residential units were allotted as security against the investment. However, despite the expiry of the agreed timeline for returns in 2024, neither construction activity progressed nor were payments refunded.

Subsequent verification of land records by the investors indicated that the land parcel identified for the project was no longer held by the developer and had been transferred to another party. The complainants further alleged that attempts to seek repayment were met with threats, prompting them to approach law enforcement authorities.

Based on the complaint, the CCS registered a case against the company's directors under provisions of the Bharatiya Nyaya Sanhita relating to cheating and criminal conspiracy, along with relevant sections of the Telangana Protection of Depositors of Financial Establishments Act. The investigation is currently underway, with authorities examining financial transactions, project documentation, and land ownership records.

The case is part of a broader pattern of complaints linked to pre-launch real estate schemes in the Hyderabad region. In separate instances, multiple investors have alleged that the developer marketed projects without obtaining statutory approvals and collected funds on the promise of high returns and expedited delivery timelines.

Regulatory action has also been initiated against the developer. The Telangana Real Estate Regulatory Authority (TG-RERA) had earlier imposed penalties on Bharathi Builders for conducting pre-launch sales without registration and directed the company to refund amounts collected from buyers.

Such cases have drawn attention to the risks associated with pre-launch investments in unregistered projects, particularly where approvals, land ownership, and execution capabilities remain uncertain. Authorities have reiterated the need for buyers to verify regulatory clearances and project registration status before committing funds, as investigations into similar complaints continue across the region.