Realty, finance firms duped 17.93 lakh people in 10 yrs

www.mangaloretoday.com

Bengaluru, Jul 30 2017 (DHNS): Many thousands duped in real estate and investment scams have not approached the police, the CID has found.

Between 2006 and 2016, companies with dubious intent have defrauded 17.93 lakh people, swindling them of Rs 3,273 crore. The numbers are mind-boggling.

Director General of Police H C Kishore Chandra said the economic offences wing of the Crime Investigation Department had confiscated properties worth Rs 594 crore in connection with the scams.

The sleuths are recovering more properties, but of the 100 accused arrested in 422 cases, most are out on bail.

A team of 40 CID officials is working exclusively on the cases, Kishore Chandra said.

The money can be returned to victims after the government auctions the confiscated properties, he said.

Of about 6,500 investors cheated by real-estate firm Dreamz Infra, only 2,382 have approached the CID and submitted documents.

Similarly, of the 5,315 investors swindled by TGS Constructions, only 2,750 have turned up with documents. In housing project Gruha Kalyan, only 814 of 2,220 investors have approached the CID.
How they operate

Such companies are launched with pomp and fanfare with the participation of film stars and celebrities.

“They advertise widely, promising good returns on investments, and flats and villas with extravagant features. For a few months, they keep their word,” Kishore Chandra said.

But once the investments become a flood, they grab the money and run, he told DH.

The owners and their benamis then get busy investing in sites, houses and stocks for themselves.

They also produce films and splurge on gold, silver and swanky cars, he said.

CID’s advice

The Criminal Investigaton Department is advising investors and buyers to verify the credentials of firms with the Reserve Bank of India, the Security Exchange Bureau of India, Registrar of Companies, and the Registrar of Cooperative Societies.

People are increasingly losing their hard-earned money because they don’t check the credentials of companies they hand their money to, he said.

Under the Protection of Interest of Depositors in Financial Establishments Act of 2004, the CID can confiscate movable and immovable properties of those accused in investment scams.