How Vasai-Virar has emerged as a hub for property swindlers

MBVV police have registered over 100 FIRs in nearly two years; received over 400 applications from victims

MBVV police have registered over 100 FIRs in nearly 2 years; received over 400 applications from victims

Retired professor Rekha Chatterjee lives with her husband Gurudas and their son in a 150-sq-ft flat in Airoli after a smooth-talking fraud urged her to invest her life’s savings in a flat in Vasai. (Bachchan Kumar/ HT PHOTO)

MUMBAI Chronicles of prospective home owners’ dreams being dashed by the unscrupulous are intrinsic to the growth of a city. In Mumbai, where real estate prices have sky-rocketed over the last two decades, the need for affordable housing, mostly 1BHKs, have opened up opportunities for builders as well as fly-by-night operators. This is evidenced in the extended suburbs of Nalasopara, Vasai and Virar, that have experienced a boom over the last 10 years.

The Mira-Bhayander Vasai Virar (MBVV) police have registered over 100 FIRs between January 2022 and October 2023, and received over 400 applications from victims who were cheated by fraudulent builders after being lured into buying or selling properties. After the housing scam of 55 illegal buildings was unearthed by Virar police in May this year, the department had received orders from police commissioner Madhukar Pandey to act against the frauds.

A victim of fraud is Rekha Chatterjee, 78, a retired college professor who lives with her husband and 38-year-old son in a 150 square feet house in Airoli, after losing her life’s savings to a fake real estate agent who promised her a house.

On August 18, 2022, Chatterjee received a call from a person who identified himself as Gautam Chaudhary, a builder, to inquire if she was looking for a house. Although Chatterjee initially declined his assistance, she said, “Chaudhary was remarkably courteous and persistently urged me to at least visit the flat at Poonam Park View building in Global City, Virar West, which he had constructed. He even arranged for his car to pick me up every time I went to inspect the flat.”

In October that year, Chaudhary gave her a memorandum of understanding after she paid him a token of ₹19 lakh. After a few days, Chaudhary told her that the owner of the flat was not willing to sell the flat and that he had another flat for the same cost. He helped Chatterjee with the registration in December last year, after which she received a call saying that her flat was ready, and she could move in after picking up the keys.

With that assurance, she sold her flat in Arnala, packed up all her belongings to move into her new home. “On reaching there, I found the flat locked. I called Chaudhary but got no response. We spent three days in the pick-up truck. In those three days, when I went to Virar police to lodge a complaint, I received a death threat from Chaudhary’s henchmen,” she said. In all, she spent ₹37 lakh on her new buy, and an additional ₹75,000 to cart her goods in a truck to the new home.

“I lost all my savings and my house which I sold to buy a bigger one. The self-proclaimed builder took everything from me, leaving me begging for a shelter,” said Chatterjee. The family wanted to a bigger living space as their 38-year-old son Indraneel lost his job during the pandemic, compelling him to move in with his parents. After she lost all her savings, a considerate relative stepped in and offered them a one-room flat in Arnala. But as the death threats continued they were forced to move to Airoli.

Like Chatterjee, when 48-year-old Piyush Dewan was exploring housing websites to invest in a house in Vasai, he received a WhatsApp message from an agent representing ‘Builders Winners,’ a company dealing in the sale of Non-Performing Asset (NPA) flats which were sealed due to non-payment of the home loans.

The agent informed Dewan about a flat in Aries Society in Evershine City, Vasai East, available for just ₹11 lakh. “The deal seemed profitable, considering property value never depreciates,” mentioned Dewan, who had recently returned to India after working in the hospitality sector abroad.

On a visit to the office he found 15 women working, but the CEO and executives were conspicuously absent. He paid a token amount of ₹3 lakh; and when he wanted to inspect the flat, the agents said bank would not permit it until formalities were completed.

In March 2022, when Dewan finally received the Memorandum of Understanding (MOU), he was allowed to see the flat from inside. But on reaching the premises he discovered a bank seal on the flat and numerous notices stuck on the door. When he dashed to the agent’s office he found it locked, with several buyers waiting outside.

It later emerged that the frauds had duped all the victims of over ₹4 crore, which prompted Dewan to take action. In such cases while cops manage to make a few arrests, the stolen money is rarely recovered.

“This year, we have arrested over a dozen such fake builders and agents who lured buyers by showing them plots or even buildings claiming that they had constructed the same, and then taking token money or even completing the registration process absconding with the booty,” said Pramod Badak, senior police inspector of crime branch unit 3 of MBVV police.

A fortnight ago, police had arrested a 54-year-old director of a construction company who along with his accomplices duped nearly 150 investors and home-seekers of ₹30 crore over a period of five years. The accused Raju Surile was arrested from Bengaluru by the crime branch (zone III) attached to MBVV police.

Officials said that buyers should verify all the claims of agents and builders before investing their hard-earned money in any property. “Buyers should be sensitive to red flags that are raised while dealing with builders and agents and make a record of all the transactions made by them. All the documents of the property and flats should be verified,” said an official from MBVV police crime branch.