Marg Group chairman and managing director Gorripati Ramakrishna Reddy was arrested in connection with two more cheating cases by the Central Crime Branch(CCB).
Marg is a multi-crore company which has developed residential townships, airports, power utilities, ports and other infrastructure projects across the country.
Ramakrishna Reddy launched New Chennai Township Private Limited in 2006 and the registered office of the company is at Seekanakuppam Village, Cheyyur, Kancheepuram. The total paid-up capital was ₹120 crore.
ADVERTISEMENT
The company also has secured loans to the tune of ₹1,344.32 crore, as per the balance sheet prepared for the period ending on March 31, 2016.
ADVERTISEMENT
ADVERTISEMENT
Flagship project
ADVERTISEMENT
Swarnabhoomi is the flagship project of the company. The company was planning to construct 250 flats near Seekanakuppam in nearly 630 acres, which came under the Special Economic Zone. As per the regulations, the flats or houses developed in the land should be allotted to the employees who are working in the SEZ. They should not be sold to outsiders.
Against this backdrop on Wednesday, Abdul Mansoor of Kalpakkam lodged a complaint against the company alleging that he has been cheated. Mr. Mansoor said he had paid ₹ 25 lakh for a flat, which was yet to be built. Even after receipt of the money, the construction company failed to execute sale deed and register the property in his name. Based on the complaint, the CCB, Entrustment and Document Fraud wing-II arrested Reddy and lodged him in Central Prison.
S. Janakiraman, Inspector of Police, CCB, said, “We have arrested Reddy for involvement in two more cases, which were booked against him after buyers of property lodged complaints. Over 120 complaints have been received so far against the company from several persons including non-resident Indians.”
Lease agreement
The investigation revealed that Reddy’s company, instead of executing the sale deed, preferred to execute a 99-year lease agreement in favour buyers who are not residents of the SEZ, which is illegal. The company has cheated several persons after receiving money for construction of flats under the name of Savithanjali in Kalavakkam and Marg Brindavanam in Kancheepuram district and thus it has cheated to the tune of ₹11 crore, as per initial investigation.