Don’t miss the latest developments in business and finance.

Delhi Police arrest Mohali housing society chief for fraud

Image
Press Trust of India New Delhi
Last Updated : Nov 21 2014 | 10:00 PM IST
Delhi Police have arrested the president of a Mohali-based cooperative housing society, members of which allegedly cheated gullible investors by purchasing land in the name of individuals instead of the society and selling it to make profits.
Virinder Singh, the president of IA & AD Employees Cooperative House Building Society Limited, was arrested by the Economic Offences Wing (EOW) of Delhi Police yesterday from Panchkula, Haryana following a tip-off.
Deputy Commissioner of Police (EOW) Mangesh Kashyap said the arrest was made after "a case was registered on the complaint of Ashish Sharma that he was duped to the tune of Rs 1.40 crore on the pretext of providing residential plots/flats in Mohali by Ritesh Bhatia, a private builder, along with officials of the society".
During investigation it was found that Rs 1.40 crore was transferred to the account of the private real estate firm and that a payment of Rs 95 lakh was made on the direction of the society officials - Virinder Singh (president) and Harjinder Singh (secretary) - to purchase land for the society.
In this regard, Harjinder issued receipts of the payment and shared certificates against the said payments. Further, it was also revealed that instead of purchasing land in favour of society, the accused officials got the land purchased in their name and sold them, police said.
"The modus operandi of the accused society officials is that they induced the new entrant members on the pretext of providing residential plots/flats and received payments by issuing the share certificates," said Kashyap.
From that money they purchased land in their names and sold it in market and cheated the gullible investors/members. At the time of taking money from the complainant, the society had no license/permission from land owning agency, he said.
Virinder was arrested yesterday from Panchkula, Haryana following a raid. Another accused Harjinder is absconding and efforts are on to nab him.
Virinder has been placed in police custody. Investigation in the case is in progress, police said.

More From This Section

First Published: Nov 21 2014 | 10:00 PM IST

Next Story