A 47-year-old builder has been arrested for allegedly cheating around 300 investors of crores of rupees by not delivering flats within the stipulated timeframe.
According to police, Mahim Mittal (47), builder and a qualified chartered accountant, was arrested recently under various sections of IPC for not handing buyers their flats on time.
His arrest came after several FIRs were registered over alleged delays in a project launched by the Golf Course Sahkari Awas Samiti Ltd, namely 'Shivkala Charms'.
Mittal and his associate, Asit Mittal, managed the financial affairs of the said 'samiti'.
In their complaint to police, the investors alleged that the firm, Golf Course Sahkari Awas Samiti Ltd, in connivance with the various companies of Shivkala Group and their directors, had cheated the general public.
"The firm did not deliver the flats as promised, by the end of December, 2008," said Additional Deputy Commissioner of Police (Economic Offences Wing), Mangesh Kashyap.
Most of the flats in the said project were financed by different financial institutions.
It has also come to light that the same flat was allotted to multiple persons with financial institutions having extended more than one loan on the same property to different persons.
"They allotted more than 300 flats against an availability of 140 flats. Total amount financed by these banks/financial institution is approximately Rs 60 crore," Kashyap said.
During the probe, it was found that funds of the 'samiti' collected from the investors were regularly transferred to its sister concern, M/s Advantage Engineers and Developers Pvt Ltd, whose directors/authorised representatives are the family members of Mahim Mittal.
Thirteen bank accounts related to various group companies of Shivkala Group have been frozen following Mahim Mittal's arrest, police added.
