Hyderabad Builders Face Legal Action Over 87 Lakh Investment Scam
In a significant development, the Central Crime Station (CCS) in Hyderabad has officially registered a criminal case against the directors of Bharathi Builders. The case revolves around allegations of duping a local businessman and his brother out of a substantial sum of 87 lakh rupees. The fraud was perpetrated under the guise of a pre-launch investment scheme for a proposed gated community project located in Bhanoor, within Sangareddy district.
Complaint Details and Investment Scheme
The complainant, identified as K Krishna Sumanth, a 46-year-old resident of Banjara Hills, Hyderabad, has provided detailed accounts to the police. According to Sumanth, the directors of Bharathi Builders, D Nagaraju and M Siva Rama Krishna, approached him and his brother, Krishna Kanth, in August 2021. The duo aggressively persuaded the brothers to invest in their proposed residential project.
Key promises made by the accused included:
- Acquisition of 6.39 acres of land spread across multiple survey numbers in Bhanoor.
- A guaranteed return of double the principal investment within a 36-month period.
- Two fully-furnished flats pledged as security for the investment.
Acting on these assurances, Sumanth and his brother made an initial payment of 64 lakh rupees on August 4, 2021. Following this transaction, the builders formalized the agreement through a Memorandum of Understanding (MoU), which allotted two flats, each measuring 1,300 square feet, in the yet-to-be-constructed project.
Escalation of Fraud and Broken Promises
Months after the initial investment, the directors contacted the brothers again, this time requesting an additional 23 lakh rupees. They cited an increase in the flat sizes from 1,300 to 1,715 square feet as the reason for the extra funds. Trusting the builders, Sumanth and his brother complied, bringing their total investment to 87 lakh rupees.
However, the promised maturity date of August 3, 2024, came and went without any repayment or visible progress on the construction site. Growing suspicious, Sumanth decided to investigate the land records independently. To his shock, he discovered that the property in question had been sold to another party entirely. The land was no longer registered under the name of Bharathi Builders, rendering the investment scheme baseless.
When the brothers attempted to confront Nagaraju and Siva Rama Krishna, they allegedly faced threats. The complainant stated that the directors engaged anti-social elements to intimidate them, further exacerbating their distress. "We request you to take necessary legal action against them," Sumanth pleaded in his formal complaint to the authorities.
Legal Proceedings and Charges Filed
Based on the detailed complaint, the CCS took swift action, registering the case in the second week of March. The directors have been charged under multiple sections of the law, reflecting the seriousness of the allegations:
- Section 318(4) of the Bharatiya Nyaya Sanhita, pertaining to cheating.
- Section 61(2) of the Bharatiya Nyaya Sanhita, related to criminal conspiracy.
- Section 5 of the Telangana Protection of Depositors of Financial Establishments Act.
This case highlights the risks associated with pre-launch real estate investments and underscores the importance of due diligence. The CCS investigation is ongoing, with authorities working to gather further evidence and ensure justice for the victims. The incident serves as a cautionary tale for investors in Hyderabad's booming real estate market, urging vigilance against fraudulent schemes.
