Kalyan (Maharashtra) [India], October 6 (ANI): Khadakpada police have registered a case against three builders associated with a project in Kalyan for alleged fraud involving more than Rs 176 crore. The case follows a complaint by a 66-year-old retired man, who has alleged that he and hundreds of other homebuyers were allegedly made to pay substantial amounts despite the project remaining incomplete.
"Police have registered a case under Sections 318(4), 316(2) and 3(5) of the Bharatiya Nyaya Sanhita against builders Shrikant Digambar Shitole, Chetan Saraf, Mahesh Gosavi and others. An investigation into the allegations is underway," officials said.
According to the complaint, Nanda Prabhakar Mhatre had booked Flat No. 1101 on the 11th floor of A Wing of Goldmine Avenue-1, part of the Taikun Gold Avenue project in Khadakpada, on August 31, 2021. The total cost of the flat was fixed at around Rs 68.15 lakh.
Mhatre has stated that he paid approximately Rs 39.36 lakh towards the flat through cheques and a home loan up to the time of registration. A registered Agreement for Sale was executed on October 7, 2021, under which possession of the flat was to be handed over by July 2025.
The complainant further stated that he had obtained a home loan of Rs 43 lakh from the Panvel branch of Indian Bank, of which Rs 23 lakh was paid to the builders.
However, according to the complaint, construction of the Taikun Gold Avenue project virtually came to a halt in 2022. At that stage, construction had reportedly reached only around the ninth or tenth floor and did not progress thereafter. The project is currently alleged to remain stalled.
The complaint states that the builders subsequently held several meetings with flat purchasers and repeatedly assured them that construction would resume within the next few months. The buyers were also allegedly informed that a loan had been sanctioned through the SWAMIH Fund and that the funds would be used to restart construction.
According to the complainant, despite these assurances, work did not resume.
The complaint also alleges that the Agreement for Sale contained provisions requiring the developer to pay interest and rent to buyers in case possession was not handed over within the stipulated period. Mhatre has alleged that these obligations were not honoured. When he sought payment towards rent and interest, the builders allegedly told him that they did not have the money to make the payments.
The complaint alleges that the matter extends beyond purchasers of flats in the new project and also involves a redevelopment project concerning 184 existing residents of six old buildings in the Chickanghar area.
According to the complaint, societies representing the residents of the six buildings came together to form the Chickanghar Shantita Cooperative Housing Society. The society had initiated the redevelopment process in 2011.
A joint venture was subsequently formed under the name Taikun Avanti Projects LLP. The complaint states that developers were granted rights for the redevelopment project through a General Power of Attorney executed on August 12, 2013, followed by another power of attorney dated August 12, 2014.
Under the redevelopment arrangement, the 184 society members were to receive new flats after redevelopment, while the developer was also responsible for paying rent to them during the period of redevelopment.
The complainant has alleged that these commitments too were not fulfilled.
The complaint further alleges that after collecting substantial amounts from flat purchasers, the developers allegedly diverted or invested the money elsewhere instead of completing the project and handing over possession.
It has also alleged that the developers used the powers of attorney to mortgage the society's land.
According to the complaint, the overall project envisages around seven to eight buildings, with the developer having permission to construct up to 29 floors. However, the construction remains incomplete and, the complainant alleges, no individual flat purchaser has so far been given possession despite substantial payments.
The complainant has claimed that the amount collected from hundreds of buyers, including the money paid by him, exceeds Rs 176 crore. He has alleged that his payment of around Rs 39.36 lakh towards the booked flat was also allegedly misused.
Police are now examining the financial transactions associated with the project, including the amounts collected from homebuyers, project documents, agreements with the housing society, ownership and mortgage records relating to the society's land, and the alleged diversion of funds.
The investigation will also examine the roles of the three named builders and other persons associated with the project, police said. (ANI)
Maharashtra: Kalyan builders booked over alleged Rs 176-crore fraud, project stalled since 2022
