18 lakh investors duped of Rs 3,273 crore by ten firms

18 lakh investors duped of Rs 3,273 crore by ten firms
31/07/2017 , by , in News/Views

The Criminal Investigation Department (CID), which is investigating alleged irregularities by real-estate firms in Karnataka, finally put numbers to the big fat scam on Saturday.

The investigating agency revealed that 422 cases were filed against 10 firms from 2013 to 2016. C H Pratap Reddy, ADGP of CID, on Saturday told media persons that 17,93,480 people from across the state invested Rs 3,273 crore in these firms.

Reddy said, “The 10 companies include Agri Gold, Hindustan Infracon, Dreamz Infra India Ltd and TGS Construction Pvt Ltd, Gruha Kalyan, Seven Hills and others.”

He continued, “These firms convinced people to invest in their firms to get property at cheap prices. They had used film stars to attract customers. The firms also collected money illegally from many customers without giving any documents. They convinced them that investors will be given attractive interest within a year and assured flats and sites for cheap prices in and around the city.”

“Most of the victims are retired government officials, including ex-servicemen, private company employees and businessmen. They showed vacant areas to the customers and lured them into parting money by promising to deliver the project within promised date,” he added.

The officer said those making profits from these businesses had splurged the money in hosting parties for celebrities, including cricketers and film actors, buying luxury cars and film production. They also put the money in fixed deposits in several banks.

So far over 100 people, including those working in the companies and their promoters, have been arrested and sent to judicial custody.

Over 40 officers were involved in the probe. They gathered statements and documents from thousands of victims as evidence.

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