Builder held for duping investors
Yet another builder has landed in the police’s net for allegedly duping thousands of investors of over Rs 50 crore by offering bogus pre-launch schemes, reports Ravi Bajpai.delhi Updated: Oct 16, 2007 02:05 IST
Yet another builder has landed in the police’s net for allegedly duping thousands of investors of over Rs 50 crore by offering bogus pre-launch schemes. YS. Rana, Managing Director of PSG Developers and Engineers Limited, allegedly duped 1800 investors by luring them to put money in upcoming real estate projects in Manesar, Greater Noida and Faridabad, police said. “We have registered a case each for all three locations. Till now we have received complaints from 395 investors amounting to Rs 18 crore," said SBK Singh, ACP, Economic Offences Wing.
Under a pre-launch scheme, a developer sells plots and flats at cheap prices even before acquiring the necessary licences to start building, at times even without acquiring land to build on. PSG developers began advertising for the townships in 2005. "They advertised in major newspapers and channels. The townships were to come up in 750 acres of land. In reality, the developer only had a fraction of that land. To attract investors, the developer shifted their office from Okhla to Le Meridian hotel," said an officer.