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Land Scam In Bangalore

BANGALORE: Lured by attractive terms, hundreds of investors were cheated of lakhs of rupees in a real-estate scandal involving Orange Properties about two years ago. These investors are still a hapless lot, for they do not know whether they will get their money back.

The police claim that the case has gone to the court and unless an order is obtained, no further action can be taken.

Sixty-eight-year-old retired chief engineer S V Ramamurthy is one such investor.

“As many as 400 of us have been cheated in a similar manner,” he laments. He had invested Rs 18 lakh with Orange Properties.

The land scam

In 2008, advertisement hoardings that were erected all around Bangalore, detailed that European Township, a residential block of flats developed by Granity properties in K R Puram near Hoskote Bidarahalli, would be the next big thing in realty.

Willing investors were led to the site that was launched by Orange properties.

When more than 400 people fell for the advertisements and invested in the property, the office was abruptly shut down. It came to light that investors were not shown any documents.

Following this, some of the investors lodged a complaint with the city police, who forwarded the case to the CCB.

Many cheating cases under the IPC were registered in Ramamurthy Nagar and Ashok Nagar Police Stations.

The CCB police arrested both Granity Properties’ owner Ashfaq Ahmed and Vijay Tataa Ravipati of Orange Properties. The High Court ruled that the amounts collected by both the companies should be returned to the applicants in four equal installments on 1st September 2009, 15th September 2009, 30th September 2009 and 15th October 2009.

On November 9 last year, Ashfaq moved a petition in the HC, stating that he is bankrupt, but will provide the investors their properties through another company.

“We were told that we will be provided with sites under New Millenium Shelters Private Ltd within four months,” said one of the investors, who went on to add that no action has taken place despite four months after the deadline.

Millennium Shelters operates out of a small room near Cash Pharmacy on Presidency Road with just two employees and is not registered anywhere in Karnataka.

Police speak

City Police Commissioner Shankar Bidari said, “The developers had deposited about Rs 2 crore with the Supreme Court, which was distributed among the investors.” Siddaramappa, DCP (Crime), said Ashfaq Ahmed was arrested immediately once a case was registered against him.

The DCP added that further investigation could not be carried out unless the stay was lifted. Vijay Tataa of Orange Properties, who has 25 per cent stake in the property, has moved the Supreme Court and has deposited the required amount in the court.

Investors, on the other hand, feel they have not received encouraging signs.

One investor said Orange Properties claims to have released the DDs to the CCB.

The CCB has stoutly denied the claim.

Source: expressbuzz

Tags: Bangalore, Land