CBI books two city construction firms for defrauding home buyers

MUMBAI: The CBI has booked two Mumbai-based construction firms based on a Supreme Court directive which had sought an investigation of construction firms across the country over allegations related to criminal conspiracy, cheating and criminal misconduct

MUMBAI: The CBI has booked two Mumbai-based construction firms based on a Supreme Court directive which had sought an investigation of construction firms across the country over allegations related to criminal conspiracy, cheating and criminal misconduct.

The SC, in its August 6 order, had directed the CBI to conduct a thorough investigation into the allegations listed in a special leave petition, and relied upon documents cited in the report of an amicus curiae appointed by the court. The report prima facie alleged dishonest luring of homebuyers to make payments to the builders who never completed the residential projects, CBI officials said on Thursday.

The two cases, against Skylink Hospitality LLP and Ozone Homes Private Limited, were registered on Tuesday by the CBI. Unknown officials of a private home finance firm were also booked.

In the first case, 10 petitions filed by different homebuyers alleged that Skylink Hospitality LLP, in a project launched in Santa Cruz in 2017-18, colluded with officials of the home finance firm and marketed a scheme that stated ‘No pre-EMI till delivery of possession of residential units’. The FIR alleged that the firm neither completed the project nor refunded the money taken from homebuyers.

The second FIR against Ozone Homes, based on six petitions by different homebuyers, stated much the same thing: that in a project launched in Wadala in 2017-2018, the firm, in connivance with the home finance firm, launched a ‘No Pre-EMI till delivery of possession of residential unit’ scheme, did not complete the project and did not refund the amounts collected from the homebuyers.

Acting further on the SC’s order, the CBI also registered three separate cases on Tuesday against builders in Bengaluru, and on Thursday carried out searches at 12 locations in Mumbai, Pune and Bengaluru. “Five cases have been registered, three against Bengaluru builders and two against the Mumbai builders, for an alleged nexus between the builders and officials of financial institutions, leading to the defrauding of innocent homebuyers,” a CBI official said. “A large number of homebuyers have approached the Supreme Court praying for relief in the builders’ fraudulent activities, which have affected their lives for many years.”

The CBI searches focused on attempting to gather evidence to unravel the alleged larger conspiracy involving diversion of funds, financial irregularities, and fraudulent practices in the housing sector. Searches resulted in the seizure of incriminating documents, digital devices and other materials, which are being examined, officials said.