Mumbai Police Charges Real Estate Firm and Directors for Defrauding Investors of Rs 31 Crore

Mumbai: The Economic Offences Wing (EOW) of the Mumbai police has taken legal action against a real estate company and its two directors for allegedly defrauding investors. The accused are charged with promising an 18% quarterly interest per annum on investments in their project, but failed to return the money, resulting in a total loss of Rs 31.2 crore for the investors.

The accused, Ranbir Real Estate Developers LLP, and its directors, Jaykumar Gupta and Suyash Gupta, have been booked under sections of the Indian Penal Code (IPC) for cheating and criminal breach of trust. The alleged crime occurred between March 2021 and May 2023. The FIR was initially lodged by Mahesh Doshi, a 71-year-old resident of Andheri, at the Andheri police station on Wednesday. The case was then transferred to the EOW for further investigation.

According to the complaint, the accused promised 18% quarterly interest per annum to attract investors into their real estate project located in Jogeshwari. They managed to collect Rs 31.26 crore from 19 investors, including Doshi. However, the accused stopped paying interest to the investors after February 2024. Despite the project being nearly 90% to 95% complete, the developers did not return the principal amount to the investors.

An EOW officer stated, “The project is almost ready, and the developers are planning to hand over possession in the next couple of months. The investors who did not receive their money back approached the police. We have registered a case and the investigation is ongoing.” The police clarified that the investors had invested for interest and were not flat buyers.

This case highlights the risks associated with high-yield investment schemes and the importance of due diligence before making financial commitments. Investors are advised to verify the credibility of real estate developers and the status of projects before investing. The EOW is working to recover the funds and bring the accused to justice.

The real estate sector in Mumbai is a critical component of the city's economy, and such fraudulent activities can have far-reaching consequences. The police and regulatory bodies are taking stringent measures to protect investors and maintain the integrity of the market. The ongoing probe will hopefully provide justice to the affected investors and serve as a deterrent to potential fraudsters.