Hyderabad Real Estate Firm Accused of Defrauding Investors with Pre-Launch Offers

Hyderabad: A private worker from Chikkadpally has approached Cyberabad EOW sleuths, alleging that a real estate firm and its management defrauded him and other investors of several crores of rupees through a pre-launch offer in a proposed real estate venture at Bhanur in Sangareddy district.

As the accused failed to fulfill their promises, the victim approached the police, who registered a cheating case. The complainant, P Kishore Kumar, 45, told police that he and about 300 other buyers were induced to invest in Bharathi Green Empire Heights, a real estate project at Bhanur promoted by Bharathi Builders India.

According to Kumar, the company's chairman, Dupati Nagaraju, managing director Mulpury Siva Rama Krishna, and chief executive officer Ponnari marketed the venture from late 2021, offering flats under an attractive pre-launch scheme. Sales agent G Lakshmana Rao, claiming to be RERA-certified, showed documents of 6.35-acre land in Bhanur and assured the investors that statutory approvals and an HMDA layout permit were under process.

Convinced by the offer, Kumar booked a 1,150 square feet two-bedroom flat, paying Rs 11.5 lakh, half the quoted price, through cheques and online transfers. A memorandum of understanding dated October 28, 2021, promised project completion within 30 months. However, as the project did not materialize, Kumar sought a refund in April 2023 but did not receive the amount.

Subsequently, some buyers found out that the bulk of the Bhanur project land had been transferred to other businessmen without the knowledge of the buyers or the planning authorities. Efforts to meet the builder allegedly met with threats, and refund cheques issued to some customers were dishonored.

Kumar listed 22 other victims who together paid Rs 5.39 crore and alleged that through misleading brochures, television advertisements promising to double the investment in two years, and verbal buy-back guarantees, the accused cheated the investors.

Based on the complaint, a case was registered under Sections 318(4) (cheating) and 316(2) (Punishment for criminal breach of trust) of the Bharatiya Nyaya Sanhita against Bharathi Builders India Private Limited, Dupati Nagaraju, Mulpury Siva Rama Krishna, Ponnari, and others. Police said they were analyzing documentary evidence, including payment receipts, and after the collection of further evidence, appropriate legal action would be initiated against the accused.