E-Paper
Ludhiana realty firm chairman booked for cheating investor of ₹2.4cr
The FIR follows a complaint by Falitash Jain, a businessman and resident of New Madhopuri, who alleged that despite paying over ₹2.41 crore for four flats at the project, the company failed to complete construction and hand over possession, causing both financial and mental trauma.
The Sarabha Nagar police have booked Sunil Kant Munjal, the director of Hero Realty Private Limited, along with company’s sales head Nikhil Jain, in a cheating case linked to the firm’s Hero Homes project in South City, Ludhiana.
The FIR follows a complaint by Falitash Jain, a businessman and resident of New Madhopuri, who alleged that despite paying over ₹2.41 crore for four flats at the project, the company failed to complete construction and hand over possession, causing both financial and mental trauma.
According to the FIR, the complainant said he booked four under-construction flats in 2018 by paying a 10% advance amounting to ₹2.41 crore. According to him, the company advised him to secure a bank loan for the remaining amount and assured that Hero Homes will bear the EMI until possession was handed over. The company promised to give the possession of flats by March 31, 2020.
However, Jain alleged that the company later refused to continue paying the EMI, citing a contractual clause and attributing the decision to Covid-related disruptions. As a result, he was left to bear the financial burden alone. With mounting dues, the bank reportedly classified him as an NPA (Non-Performing Asset), adding to his financial distress.
The complainant further stated that despite repeated requests to company officials, no action was taken. The flats, scheduled for possession in 2020, remain incomplete even after seven years. Jain said he had been living in a rented house directly opposite the project site, paying heavy rent while the construction remained stalled.
His lawyer Arpan Jain confirmed that a formal complaint was submitted to the police, following which an FIR was registered at the Sarabha Nagar police station on November 14 under Sections 406 (criminal breach of trust), 420 (cheating) and 120-B (criminal conspiracy) of the Indian Penal Code.
Jain said he now planned to approach the Real Estate Regulatory Authority (RERA) and the Securities and Exchange Board of India (SEBI), accusing the company of misleading buyers and violating contractual obligations.
Firm denies allegations
Issuing a statement, Hero Realty Private Limited claimed that the allotment of the four units in question was cancelled in October 2021 due to consistent payment defaults on the part of Jain.
It added that against the total sale consideration of ₹3.25 crore, an amount of ₹2.08 crore was received by the company, out of which ₹1.75 crore were financed through bank, and Falitash Jain and his family paid only ₹32 lakh.
The company contended that Jain’s allegation that the project was incomplete was baseless as the construction finished in 2021. The possession of the units was offered to Jain and his family in July 2021. However, on account of payment default, the units could not be handed over to them.
“The project was successfully delivered to the allottees and as of now, more than 210 families are living in the project. Jain has falsely given a criminal angle to a pure civil dispute, if any. Moreover, Sunil Kant Munjal’s name has been deliberately included by the complainant to arm twist and exert unwarranted pressure on the company. Munjal is neither part of the executive team of the company nor involved in its day to day operations or management,” the statement added.
