Developer held for cheating flat buyers of Rs 25 crore

MUMBAI: The economic offences wing (EOW) of city police have arrested the director of a construction company for allegedly cheating 40 flat buyers of Rs 25 crore.

In 2010, A&A Shelters Pvt Ltd., had allegedly promised the buyers to deliver flats in a Kandivili project within three years. However, even after six years of making payments, the 40 buyers are still waiting to get their dream homes. Subsequently, six FIRs were registered against the directors of the firm in Amboli police station.

While Abhishek Vyas, the prime suspect, has been arrested now, Vishal Dattani, another director of the firm, is already in judicial custody. “Vyas wanted to redevelop 10 societies in Amboli area. He demolished two societies and promised to pay rent to the tenants. Meanwhile, around 40 people booked flats in his newly promised project in 2010,” said a police source. While he promised to hand over the possession within three years, no work has started, said the officer.

“During interrogation, Vyas told police he had been trying to get all the clearances from Mhada but the work got stuck. The worried buyers then approached the Amboli police and filed six separate FIRs against him and others,” police said.

“We have frozen more than 12 bank accounts belonging to Vyas, co-accused and his firm. We have also written to the Indian Banking Association to freeze all his banks accounts across the country,” added the officer. The police have also approached various sources including banks to know if Vyas or his firm took loan for this project or mortgaged it.

A police action report is likely to be sent to Mhada about the firm. “All the investors who approached the police had booked flats in the saleable area. Vyas told us that he had used the money to distribute rent to the tenants, repay loans and do miscellaneous works,” added the police.

The EOW has in the last six months arrested at least four developers for not handing over flats/houses to buyers in time.

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