The Economic Offences Wing (EOW) of Uttar Pradesh Police has made a significant arrest in connection with a multi-crore real estate fraud case involving Karmabhoomi Real Estate Company Limited. Mahipal Singh, a director of the company, was taken into custody on June 6 during a statewide crackdown on economic offenders. The accused, a 50-year-old resident of Chhatikara in Mathura, had been evading arrest since the registration of a case in 2023.
Details of the Fraud
According to investigators, Karmabhoomi Real Estate Company Limited, registered with the Registrar of Companies in Kanpur, operated across multiple districts including Mathura, Kanpur, Bijnor, Moradabad, Shahjahanpur, and Lakhimpur Kheri. Between 2011 and 2015, the company allegedly ran aggressive investment schemes that promised unusually high returns along with assured allotment of residential plots and flats. These schemes lured a large number of investors, who collectively deposited around Rs 100 crore. Victims were promised quick doubling of their investments and affordable real estate options. However, the company failed to deliver on both counts—neither were properties allotted nor were matured funds returned to investors.
Legal Charges
Mahipal Singh has been booked under multiple sections of the Indian Penal Code, including criminal breach of trust (Section 409), forgery (Sections 467 and 468), use of forged documents (Section 471), and criminal conspiracy (Section 120-B). The case, registered as Case Crime No. 03/2023 at the EOW Kanpur Sector, is under Investigation No. 44/2023.
Organized Conspiracy
Investigators revealed that after collecting substantial funds from the public, the company's directors and representatives abruptly shut their offices and disappeared, leaving investors with no recourse to recover their money. The probe indicates a well-planned conspiracy involving forged documents, misleading marketing, and false assurances. Instead of utilizing funds for real estate projects, the money was allegedly siphoned off and misappropriated for personal gains.
Arrest and Ongoing Investigation
Acting on intelligence inputs, the EOW tracked Singh to Mathura and arrested him after months of evasion. He is being produced before a competent court, and further legal proceedings are underway. The EOW confirmed that efforts are underway to nab the remaining five absconding accused. Financial records, banking transactions, and property details are being scrutinized to trace the diversion of funds and identify assets acquired through the alleged scam. Officials indicated that more arrests are likely as the probe progresses.
This case is among the largest real estate-linked frauds investigated by the EOW in Uttar Pradesh in recent years, involving widespread cheating and losses estimated at around Rs 100 crore.
