The Economic Offences Wing (EOW) of the Delhi Police has arrested a 47-year-old builder for allegedly cheating investors of a housing project in Greater Noida. The accused had allotted over 300 flats in a housing project that proposed availability of only 140 flats.
The arrest came after those who had invested money in the project named ‘Shivkala Groups’ lodged complaints alleging that the company — Golf Course Sahakari Awas Samiti — cheated them on the pretext of a pre-launch project.
Accused Mahim Mittal, a chartered accountant, was later arrested after investigations revealed his purported involvement. Three cases have been filed against him with the anti-land and building racket section of the EOW.
Additional Deputy Commissioner of Police (EOW) Mangesh Kashyap said: “Mittal was wanted in connection with a project launched by Golf Course Sahkari Awas Samiti named ‘Shivkala Charms’ in Greater Noida.”
Most of the allotted flats in the project were financed by PNB Housing Finance, LIC Housing Finance, HDFC Bank and Axis Bank.
“The financial institutions extended loans to the extent of 90 per cent of the total consideration amount and directly transferred money to the firm,” added Mr. Kashyap.
During investigations, the police found that multiple allotments of flats were made and financial institutions had advanced more than one loan on the same flat, but to different persons. There were also allotments in respect to non-existent flats.
The Greater Noida Industrial Development Authority has also confirmed that the firm had filed a completion certificate on December 29, 2009, and the authority has dismissed it. The lease deed granted also stands cancelled.
It was also revealed that funds collected from investors were regularly transferred to the firm’s sister concern Advantage Engineers and Developers, whose directors are Mittal’s family members. Several bank accounts related to various group companies have also been frozen.
