Mumbai Real Estate Scam: 3 Directors Arrested for ₹12.50 Crore Fraud
The Mumbai police have arrested three directors of a real estate firm for allegedly defrauding 19 individuals of ₹12.50 crore. The accused took a loan from a housing finance company in the names of 19 flat buyers, claiming it was for building flats for th
Real Estate ScamMumbaiMalad PoliceHousing Finance CompanyIndian Penal CodeReal Estate MaharashtraOct 03, 2024
According to police reports, Vanavat, employed by Rishabraj Toughcons City Homes Private Limited, made a deal with 19 Malad Jai Amrit Housing Society residents in October 2016. He received payment from them to build houses in a redevelopment scheme. The three accused then plotted to get a loan of ₹12.50 crore from Reliance Home Finance, listing the 19 members of the housing society as borrowers.
The complainant, Krishna Gaud, a 44-year-old resident of Malad (West), alleged that the three accused failed to repay the loan to the finance company, misused the loan funds for personal gain, violated the trust of the housing society members, and defrauded them. The buyers received the apartments, but the loans remain unpaid in their names due to the accused person not repaying.
The Malad police have charged the three suspects with sections 406, 420, and 34 of the Indian Penal Code and are verifying the truthfulness of the accusations against them. The Mumbai police EOW may take over the investigation of cases with fraud involving over ₹10 crore, resulting in the transfer of the case.
Frequently Asked Questions
What is the amount of fraud alleged in the case?
₹12.50 crore
How many individuals were allegedly defrauded?
19
What is the name of the real estate firm involved?
Rishabraj Toughcons City Homes Private Limited
What is the name of the finance company that provided the loan?
Reliance Home Finance
What are the charges filed against the accused?
Sections 406, 420, and 34 of the Indian Penal Code
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