Hyderabad: ED Raids Real Estate Firm for Irregular Cash Transactions

Hyderabad: Enforcement Directorate (ED) officials conducted raids on Bhuvana Teja Real Estate Company at six different locations in Hyderabad on Wednesday. The raids were carried out to investigate various irregularities, including attracting customers with pre-launch offers and collecting substantial amounts of cash.

After the Telangana Real Estate Regulatory Authority (TGRERA) imposed penalties for violations, the ED officials intensified their focus on the company’s business activities. The primary concern was the diversion of funds collected from customers under pre-launch project offers.

During the raids, the agency found evidence of significant irregularities in the diversion of funds. They are currently verifying the data of customers who bought property under the pre-launch schemes. Bhuvana Teja Real Estate had collected more than Rs 70 crore from customers in the name of pre-launch schemes, allegedly cheating the buyers.

Earlier, the TGRERA had imposed a penalty of Rs 14.91 lakh on the company for failing to hand over flats on time and directed the firm to refund the amount collected from customers. The TGRERA's action was a response to numerous complaints from aggrieved buyers who had not received their properties as promised.

The ED's intervention is a significant step in ensuring transparency and accountability in the real estate sector. The agency is working to protect the interests of homebuyers and maintain the integrity of the market. The investigation is ongoing, and further legal actions are expected to be taken against the real estate firm.

Real estate fraud and irregularities are not uncommon in India, particularly in major cities like Hyderabad. The TGRERA and other regulatory bodies play a crucial role in monitoring and regulating the real estate market to prevent such malpractices. Homebuyers are advised to exercise caution and thoroughly research real estate projects before making any financial commitments.

The ongoing investigation by the ED is expected to shed light on the extent of the irregularities and ensure that justice is served to the affected customers. The real estate sector in Hyderabad is closely watching the developments, as this case could set a precedent for stricter regulation and enforcement of norms.