Pune: Buyers Deceived of Over Rs 5.37 Crore in Fake Real Estate Project in Baner; Three Arrested

Baner, 22nd May 2025: A significant real estate scam has been uncovered in Baner, where buyers were defrauded of INR 5.37 crore for flats and shops in a non-existent high-rise project. The accused misrepresented construction approvals and collected money without any actual building work.

The complaint was filed by Nikhil Dnyaneshwar Phalak (32), a resident of Hinjawadi, at the Hinjawadi Police Station. According to the FIR, three individuals, including a woman, have been booked for fraud and criminal breach of trust.

Police investigations reveal that the accused had approvals from the Pune Metropolitan Region Development Authority (PMRDA) for a four-storey structure and from the Pimpri-Chinchwad Municipal Corporation (PCMC) for a separate project up to five storeys. However, they falsely claimed to have permissions for a ten-storey development and sold units on various floors—including the second, fifth, ninth, and tenth—to unsuspecting buyers.

Phalak and several other customers paid a total of INR 5,37,55,759 for apartments and commercial spaces. The accused issued payment receipts and allotment letters, and verbally promised possession by May 2020. However, no construction was ever initiated, and the funds were neither returned nor were any registered sale agreements executed. Instead, the money was allegedly misappropriated for personal gain, according to the complaint.

The case is currently under investigation by Sub-Inspector Kande of the Hinjawadi Police. The scam has raised serious concerns about the regulatory oversight in the real estate sector, and authorities are taking steps to prevent such incidents in the future. Buyers are advised to verify all approvals and permissions thoroughly before making any payments to developers.

The Pune Metropolitan Region Development Authority (PMRDA) is a statutory body responsible for the planning and development of the Pune Metropolitan Region. It plays a crucial role in ensuring that all real estate projects comply with the approved plans and regulations. Similarly, the Pimpri-Chinchwad Municipal Corporation (PCMC) is responsible for the governance and development of the Pimpri-Chinchwad area, including the issuance of building permits and the enforcement of building codes.