Real estate firm MD arrested for Rs 15 core fraud in Bhubaneswar
Odisha police's Economic Offences Wing (EOW) arrested the Managing Director of a real estate company on Tuesday for allegedly defrauding investors of more than Rs 15 crore.
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Bhubaneswar: Odisha police's Economic Offences Wing (EOW) arrested the Managing Director of a real estate company on Tuesday for allegedly defrauding investors of more than Rs 15 crore.
Jyoti Ranjan Mishra, Managing Director of M/s Mishra Creations Pvt. Ltd., was named as the accused. He will be brought before the designated court under the OPID Act.
Mishra was arrested on the basis of a written complaint filed by Swadesh Ray Chaudhury of Rasulgarh, Bhubaneswar, alleging that he and other investors were duped in the name of giving flats in M/s Mishra Creations Pvt. Ltd's project 'UTOPIA' at Chandaka, according to an EOW press release.
The complainant reserved a flat in the project in 2016 and advanced Rs 16 lakh to accused Mishra. He obtained a bank loan in order to make the advance, and he also entered into a three-way agreement with the builder and the bank. The flat was supposed to be handed over in 30 months, but he has yet to receive it from the real estate company, nor has he been refunded his investment.
From 2016 to the present, the accused has collected over Rs 15 crore from 127 investors in order to provide them with flats in the 'UTOPIA' project in Anlapatna, Chandaka. The real estate company promised to deliver the flats within 30 months of booking.
The investors were forced to enter into a three-way financing agreement with the banks.
After taking nearly 95% of the total cost of the flats, the real estate company did not hand over a single flat to the investors even after 8 years and gave false assurances to deliver the flat on various pretexts.
It was also discovered that the accused MD had conducted multiple transactions involving a large number of flats booked previously in the names of various investors. Many incriminating documents were seized from the arrested accused during the investigation. The case is still being investigated.
