Pune Builder Booked for Defrauding Flat Buyers of Rs50 Crore

Pune: The Wagholi police have registered a cheating case against a city-based builder and his partners for allegedly defrauding over 150 homebuyers of approximately Rs50 crore.

The move comes after the developer failed to hand over possession of flats at a housing project in Kesnand, Wagholi, despite collecting substantial payments from customers. The investigation was triggered by a complaint from a 49-year-old buyer.

According to the FIR, the complainant paid a total of Rs31.77 lakh in 2018 for a 2-BHK flat and a commercial unit. This payment consisted of personal savings and bank loans disbursed directly to the builder’s account. As per the registered agreement, possession was promised by June 2022, with a clause stating that any delay would require the builder to refund the amount with interest at a rate 2% higher than the prevailing bank loan rates.

However, the project hit a standstill in September 2021. When the complainant visited the site in October that year, he found the site office closed and construction halted. Only seven slabs of the primary buildings were completed, while work on three other planned buildings had not yet commenced.

When several flat purchasers finally confronted the builder at his Market Yard office, he allegedly attributed the delay to labour shortages caused by the Covid-19 pandemic and claimed he had obtained an extension from MahaRERA. Despite these assurances, construction did not resume over the following two years, and the builder eventually became unreachable. In March 2024, the frustrated buyers formed an association to pursue legal action.

A legal notice sent to the developers in July 2024 was returned undelivered with the remark “addressee not residing at the given address.” Records from the inspector general of registration (IGR) reveal that 205 sale agreements have been registered for this project. Data collected by the buyers’ association from just 56 individuals showed a collective payment of Rs8.01 crore. Police estimate that, in total, more than 150 customers have invested approximately Rs50 crore in the stalled project.

During the preliminary police inquiry, the builder claimed he had secured a MahaRERA extension to complete the project by December 31, 2027. He further stated that a project management agreement had been signed with a third party to resume work. However, police noted that despite several meetings and assurances to buyers, no actual construction activity has taken place on-site.