Managing directors of Parthasarathy Properties Pvt. Ltd. were arrested on Saturday on charges of cheating expatriates after promising to construct luxury apartments and villas.

Gireesh Kumar (48) of North Paravur was arrested by the Crime Detachment team of the City Police under Sunil Kumar V., Assistant Commissioner, from his residence and Shanil (38) from Kumily in Idukki.

The duo held property shows in West Asian countries and collected nearly Rs.24 crore by selling apartments and villas in Ernakulam and Thekkady. After two years, the builders had completed only one project, Park View in Kakkanad, and abandoned several others started along with it. Police said the builders had announced several projects — Vaishnava Apartment in Maradu, Revival Mist along the Periyar River in Aluva, My Castle in Chembrakal, Perumbavoor and Golden View in Thekkady — which never took off.

It was also alleged that the builders allotted the same apartment to more than one person and invested the money collected from buyers in a money chain project named Ascent For Us.

Gireesh had earlier been arrested by the Palarivattom police in February 2012 on charges of cheating. Eight cases were registered against him. He had come out on bail, and gone into hiding. Nine more cases of cheating, for which he wanted, were later registered with the Palarivattom police. Both Gireesh and Sunil were produced before the Ernakulam Judicial First Class Magistrate-I and remanded to judicial custody. The police are also probing the alleged link they had with the money chain operator.

Apple A Day files scheme

Meanwhile, the scheme formulated by real estate group Apple A Day Properties Ltd. with the assistance of Kerala State Legal Services Authority (KELSA) for making arrangements with creditors and members has been filed in the Kerala High Court. The scheme had been filed under Section 391 of the Companies Act.

The lid was blown off the real estate scam after several clients filed complaints against the company directors for failing to handover apartments and villas after collecting huge amounts.

As per the scheme filed in the High Court, two projects — Apple Ice and Apple New Cochin — will be cancelled. It said the company was willing to refund the amount collected for these two projects to the investors. The amount for refunding would be raised by selling the company’s property. Various agreements entered into by the company with the office bearers of the association of different projects were appended to the scheme. There were a total of 19 projects, of which two projects had already been completed and handed over to the investors. Work on the remaining projects had been started and would be completed subject to the approval of the scheme.

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