Pre-Launch Fraud: CCS registers case against 2 directors in Rs 87 lakh cheating

Investors allege false promises of returns and flats in proposed project

Hyderabad, Property Pulse

The Central Crime Station (CCS) of Hyderabad Police has registered a case against two directors of Bharathi Builders for allegedly cheating a city-based businessman and his brother of Rs 87 lakh under the pretext of a pre-launch real estate investment scheme.

The accused have been identified as D Nagaraju and M Siva Rama Krishna, directors of Bharathi Builders.

According to the complaint, K Krishna Sumanth (46), a resident of Banjara Hills, along with his brother Krishna Kanth, were persuaded by the accused in August 2021 to invest in a proposed gated community project at Bhanoor.

The complainant alleged that the builders claimed to have acquired 6.39 acre of land across multiple survey numbers and assured investors that their principal amount would be doubled within 36 months. They also promised two fully furnished flats as security.

Police said Sumanth initially paid Rs 64 lakh on August 4, 2021, following which the builders executed a memorandum of understanding (MoU) allotting two flats of 1,300 sq ft each in the proposed project.

Subsequently, the accused allegedly demanded an additional Rs23 lakh, citing an increase in flat size to 1,715 sq ft, which the complainant and his brother paid.

However, the promised maturity period ended on August 3, 2024, with neither repayment made nor any construction activity initiated at the site, the complaint stated.

Upon verifying land records, the complainant found that the property was no longer in the name of Bharathi Builders and had been sold to another party.

The complainant further alleged that the accused threatened them through anti-social elements when they tried to contact them regarding the investment.

Based on the complaint, CCS police have registered a case and initiated an investigation.