Action against real estate firms in Karnataka

Action against real estate firms in Karnataka
31/07/2017 , by , in News/Views

The Criminal Investigation Department (CID) that investigated alleged irregularities by real estate firms in Karnataka has filed 422 cases against 10 real estate firms. These companies are accused of cheating nearly 18 lakh investors, who had invested Rs 3,273 crores in their projects.

A senior officer at the CID on Saturday said 17,93,480 people from across the state invested Rs 3,273 crore in these firms. “We have initiated action against 10 major companies including Agri Gold, Hindustan Infracon, Dreamz Infra India Ltd and TGS Construction Pvt Ltd , Gruha Kalyan, Seven Hills and others. These firms had convinced people to invest in their firms to get a property at cheap prices. They had used film stars to attract customers,” the officer said.

The cases were filed from 2013 to 2016 and were investigated by the CID officials. “We have recommended to the government to take further action against these real estate firms. The firms had also collected money illegally from many customers without giving any documents. They also 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,” the officer said.

 The officer said those making profits from these businesses were investing funds in making films, buying luxury cars and also in Fixed Deposits in several banks.


About admin