Pune: Phoenix Mills Chairman Atul Ruia Named in ₹25 Crore Real Estate Fraud Case

Atul Ashok Ruia, Chairman of The Phoenix Mills Limited, has been named as an accused in a ₹25 crore real estate cheating case linked to the East Court Phoenix Market project in Pune's Viman Nagar.

The case has been registered on the basis of a complaint filed by Kishor Balram Nichani, who alleged that buyers of commercial units in the project were systematically cheated despite making full payments. Nichani's complaint has sparked a significant legal battle, drawing attention to the alleged fraudulent practices in the real estate sector.

According to the FIR, the complainants purchased units on November 8, 2012, but were later delivered premises with a reduced carpet area than what was promised at the time of sale. This discrepancy in the promised and delivered space has raised serious concerns among the buyers, many of whom have invested substantial sums of money.

The complaint further alleged that buyers were misled with false assurances of terrace access, while being subjected to excessive Common Area Maintenance (CAM) charges. Kishor also claims that the developer carried out deviations from the approved construction plans without obtaining the consent of the purchasers. This lack of transparency and adherence to the agreed terms has further fueled the allegations of fraud.

Additionally, he alleged that the developers failed to secure completion certificates, did not form a cooperative society, and did not execute conveyance deeds, effectively leaving the buyers without clear legal ownership of their properties. These omissions have left the buyers in a precarious legal position, unable to fully utilize or transfer their investments.

Apart from Atul Ruia, several other individuals have been named as accused in the case, including Gayatri Atul Ruia and senior executives associated with the project. The total financial loss suffered by investors is approximately ₹25 crore, highlighting the significant impact of the alleged fraud on multiple stakeholders.

Govind Jadhav, Senior Police Inspector of Viman Nagar Police Station, speaking to The Free Press Journal, said that the complaint has been filed as per court orders. 'However, commenting on the matter would be premature as the allegations are part of the investigation, and further legal procedures will be undertaken accordingly,' he added.

The Phoenix Mills Limited, a well-known real estate and retail conglomerate, has a significant presence in India's commercial and residential markets. The company's involvement in this case has raised questions about its corporate governance and ethical practices, potentially impacting its reputation and operations in the future.

As the legal proceedings unfold, the case is likely to have broader implications for the real estate sector in India, particularly in terms of regulatory oversight and consumer protection. The outcome of this investigation could set important precedents for how similar cases are handled in the future, emphasizing the need for transparency and accountability in real estate transactions.