Real Estate Scam: 3 Directors Booked for Duping 19 Investors of Rs 12.5 Crore
The Malad Police has booked three directors of a real estate company for allegedly duping 19 people to the tune of Rs 12.50 crore. The accused had availed a loan from a housing finance company in the name of 19 flat buyers, but misused the money for perso
Real Estate ScamMumbaiMaladReliance Home FinanceRishabraj Toughcons City Homes Private LimitedReal Estate MumbaiOct 02, 2024
According to the police, in October 2016, Vanavat, who was working for Rishabraj Toughcons City Homes Private Limited, entered into a sale agreement with 19 members of Malad Jai Amrit Housing Society and accepted money from them to construct houses in a redevelopment project.
Vanavat allegedly conspired with Singh and Jain and availed of a loan worth Rs 12.50 crore from Reliance Home Finance. The three accused later defaulted in repaying the loan to the finance company and misused the loan money for personal self-gain, breached the housing society members' trust, and defrauded them.
The home buyers got the flats but loans are still pending in their names as the accused person defaulted in paying back. After repeatedly following up with the accused builders till May 2024, the housing society members finally approached the police and filed a complaint.
The Malad police on Tuesday booked the trio under sections 406 (criminal breach of trust), 420 (cheating), and 34 (common intention) of the Indian Penal Code and are checking the veracity of the allegations made against the three accused.
Information
Rishabraj Toughcons City Homes Private Limited is a real estate company that was involved in a redevelopment project in Malad, Mumbai. Reliance Home Finance is a housing finance company that provided a loan to the accused.
Reliance Home Finance is a leading housing finance company in India that provides home loans to individuals and corporates. The company is a subsidiary of Reliance Capital Limited, a financial services company.
A Sections 406 (criminal breach of trust), 420 (cheating), and 34 (common intention).
Frequently Asked Questions
Who are the three directors booked by the Malad Police?
Prakshal Vanavat, Ranvijay Singh, and Rahul Jain.
How much money did the accused allegedly dupe the 19 investors of?
Rs 12.50 crore.
What is the name of the real estate company involved in the scam?
Rishabraj Toughcons City Homes Private Limited.
What is the name of the housing finance company that provided the loan to the accused?
Reliance Home Finance.
Under what sections of the Indian Penal Code were the three accused booked?
Sections 406 (criminal breach of trust), 420 (cheating), and 34 (common intention).
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