Real estate firm staff held for duping 130 home buyers of Rs 15 crore in Bhubaneswar

In addition to the arrest of Santosh Kumar Rath, a senior functionary of a real estate company, the Economic Offences Wing (EOW) of the state crime branch has intensified its investigation into the alleged duping of 130 home buyers, resulting in a loss of nearly Rs 15 crore. The company, which had initially announced an ambitious housing project in the Chandaka area in 2016, raised the hopes of many prospective buyers by promising to construct 10 blocks comprising 2BHK and 3BHK flats.

The scam came to light when Swadesh Ray Choudhury, one of the victims who had booked a 2BHK flat by paying Rs 16 lakh in advance in 2016, filed a complaint with the EOW in May. This complaint led to the subsequent arrest of the firm's managing director, Jyoti Ranjan Mishra, and initiated a manhunt for Santosh Kumar Rath, who held the position of additional director in the company.

The victims' plight reveals a common thread in the real estate industry, where promises of timely project completion and possession have often gone unfulfilled, leaving countless home buyers stranded in the lurch. The company's assurance to deliver the flats within 30 months appeared to be an enticing proposition, enticing many potential buyers to invest their hard-earned money. However, as the project failed to take shape even after years, doubts began to surface about the company's intent.

The EOW has alleged that the company deliberately employed delaying tactics, consistently making false promises to the customers and stalling the project's progress. By taking almost 95% of the total cost of the flats from the buyers, without providing any of the promised properties, the company exhibited an intention to deceive its customers and abscond with their money.

In conclusion, the arrest of Santosh Kumar Rath highlights the need for greater vigilance and caution in the real estate market. While buyers must conduct thorough research and due diligence before investing, it is equally crucial for the authorities to strengthen regulations and ensure swift action against fraudulent players. By addressing these issues, the real estate sector can foster greater trust and confidence among buyers and promote a more transparent and responsible industry.

Next (Ravi Ruia acquires Rs 1,200 crore London mansion)

Real estate firm staff held for duping 130 home buyers of Rs 15 crore in Bhubaneswar

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