The Detection of Crime Branch (DCB) in Ahmedabad has taken up a major case of alleged fraud in the city's real estate sector. A criminal complaint has been registered concerning a proposed housing project in Chharodi village, where nearly a hundred aspiring homeowners were allegedly cheated out of crores of rupees.
The Core of the Allegation: A Project Built on False Promises
According to the First Information Report (FIR), the scam revolves around a housing scheme that was marketed and sold to buyers without the mandatory legal approvals. The developers launched the project without obtaining registration under the Real Estate (Regulation and Development) Act (RERA) and without converting the land use to Non-Agricultural (NA) status. Despite this, they actively collected substantial amounts of money from at least 95 buyers for flats and commercial shops.
The case came to light when a 35-year-old software engineer, employed at GIFT City, filed a formal complaint on December 17. He was looking to purchase a 2BHK apartment for his family near the Vaishnodevi area. In November 2023, a real estate broker from Bopal introduced him to this "pre-launch" project in Chharodi, promising flats at below-market rates with permissions "under process."
A Detailed Timeline of Deception
The complainant's journey outlines a classic pattern of deception. After being shown the site and meeting one of the developers, he finalized a deal for a 1,325 square foot 2BHK flat at approximately Rs 65 lakh. He was given repeated assurances that RERA registration and NA permission were imminent.
Acting on these promises, he made a series of payments:
- November 24, 2023: An initial booking amount of Rs 1 lakh by cheque.
- December 2023 to June 2024: Additional instalments totaling Rs 10.26 lakh.
This brought his total investment to Rs 11.26 lakh, representing 20% of the flat's value under a subvention plan. Every time he visited the developer's office, the staff maintained that regulatory approvals were underway.
The Unraveling: Land Sold, Project Scrapped
The scheme collapsed in November 2025 when the same broker informed the engineer that the project had been scrapped. The land earmarked for the housing scheme had already been sold to other parties through a registered sale deed. Further police inquiries revealed the massive scale of the alleged fraud.
Investigators found that the developers had collected around Rs 35 crore from approximately 95 buyers. Some victims were given notarized Memorandums of Understanding (MoUs) as false security. When confronted, the developers reportedly admitted to diverting the funds to other projects and declared themselves unable to issue refunds.
A DCB officer stated, "When confronted, the developers admitted that the money collected from buyers was diverted to other projects and that they were not in a position to refund the amount."
Ongoing Investigation and Wider Implications
The DCB has now launched a full-fledged investigation to map all financial transactions, identify every victim, and determine the precise role of each accused, including the developers and their associates. This case highlights critical risks in the real estate market, especially concerning projects advertised in a "pre-launch" phase without visible regulatory approvals.
It serves as a stark reminder for homebuyers to rigorously verify RERA registration and land titles before investing any money. The promise of lower prices in exchange for early investment can often mask the absence of legal clearances, leading to devastating financial losses.
