Major Real Estate Fraud Uncovered in Hyderabad: 300 Investors Allegedly Cheated of Crores
A significant real estate scandal has emerged in Hyderabad, where a private sector employee from Chikkadpally has approached the Cyberabad Economic Offences Wing (EOW) with serious allegations. The complainant claims that a prominent real estate firm and its top management orchestrated a sophisticated scheme that defrauded him and approximately 300 other investors of several crores of rupees.
The Alleged Pre-Launch Scheme That Turned Sour
The case centers around Bharathi Green Empire Heights, a proposed residential project in Bhanur, located in Sangareddy district. According to the detailed complaint filed by 45-year-old P Kishore Kumar, the real estate venture was aggressively marketed by Bharathi Builders India starting in late 2021.
The company's leadership team—including chairman Dupati Nagaraju, managing director Mulpury Siva Rama Krishna, and chief executive officer Ponnari—reportedly promoted an attractive pre-launch offer for flats in the development. Sales agent G Lakshmana Rao, who presented himself as RERA-certified, showed prospective buyers documents for a 6.35-acre land parcel in Bhanur.
"He assured us that all necessary statutory approvals and an HMDA layout permit were actively being processed," Kumar stated in his police complaint, explaining how investors were convinced to participate in what appeared to be a legitimate opportunity.
Substantial Investments and Broken Promises
Convinced by the presentation, Kumar proceeded to book a 1,150 square foot two-bedroom flat, paying Rs 11.5 lakh—exactly half of the quoted price—through a combination of cheques and online transfers. The transaction was formalized with a memorandum of understanding dated October 28, 2021, which explicitly promised project completion within 30 months.
However, as months turned into years with no visible progress on the project, concerned investors began seeking answers. Kumar himself requested a refund in April 2023 but received neither his money nor satisfactory explanations from the company.
Shocking Discovery About the Land
The situation took a more troubling turn when some diligent buyers conducted their own investigation. They discovered that the majority of the land designated for the Bhanur project had been secretly transferred to another businessman, without the knowledge or consent of the investors or relevant planning authorities.
"When we tried to confront the builders about this development, we allegedly faced threats instead of transparency," Kumar revealed to investigating officers. "To make matters worse, refund cheques issued to some customers were dishonored by banks, leaving them completely stranded."
Systematic Deception Uncovered
In his comprehensive complaint, Kumar identified 22 other victims who collectively paid an astonishing Rs 5.39 crore to the developers. The alleged fraudulent tactics employed by the accused included:
- Misleading brochures that exaggerated project features and timelines
- Television advertisements that promised to double investments within just two years
- Verbal buy-back guarantees that were never documented or honored
Legal Action Initiated
Based on Kumar's detailed complaint, the Cyberabad police have registered a formal case under Sections 318(4) (cheating) and 316(2) (punishment for criminal breach of trust) of the Bharatiya Nyaya Sanhita. The case names Bharathi Builders India Private Limited along with its key executives Dupati Nagaraju, Mulpury Siva Rama Krishna, and Ponnari as primary accused.
Police authorities confirmed they are currently analyzing extensive documentary evidence, including payment receipts and project-related documents. Investigators have indicated that after collecting additional evidence, appropriate legal proceedings will be initiated against all named parties.
This case highlights growing concerns about real estate transparency in the Hyderabad region and serves as a cautionary tale for investors considering pre-launch property schemes without thorough due diligence.
