Mumbai Police’s EOW books property investment firm for duping 7,000 investors of ₹700 crore

The Mumbai Police’s economic offences wing (EOW) registered a first information report (FIR) on Wednesday against Expat Projects and Development Private Limited,

The Mumbai Police’s economic offences wing (EOW) registered a first information report (FIR) on Wednesday against Expat Projects and Development Private Limited, a Bengaluru-based property investment company, and its nine directors and top executive officials for duping 7,000 investors across various states to the tune of ₹700 crore.

HT Image

Expat Projects and Development Pvt Ltd and its directors and senior executives Sachhinandan Kanchan, Firoj Shaha, Santosh Shetty, Nenumal Bhatia, Arvind Gowda, Lancel D’souza, Parth D’souza, Rakesh Gaekwad, Raina Prasanaa and others have been charged under sections 406 (criminal breach of trust), 409 (criminal breach of trust by public servant, or by banker, merchant or agent), 420 (cheating), 120(B) (criminal conspiracy), 34 (common intention) of the Indian Penal Code and sections 3 and 4 of Maharashtra Protection of Interest of Depositors (MPID) (In Financial Establishments) Act.

Rajvardhan Sinha, joint commissioner of police, EOW, confirmed the development to HT and said that lookout circulars (LOC) have been issued against the accused and two offices of the company in Bengaluru and Mumbai have been raided.

The police said that the company would lure investors to make monthly instalment-based investments in agriculture and non-agricultural plots. “They would ask investors to invest up to 70% of the land price in instalment and then do the registration of the plot. The firm told investors that once they make the payment for the remaining 30%, they would hand over the plot. The company promised the investors that if it fails to give them the plot, then they would return the money with an additional interest of 2% to the interest rate prescribed by the Reserve Bank of India. Initially, the company delivered on their promises, but later started defaulting. They neither gave plot nor refunded money to investors. Our preliminary inquiry has revealed that since 2013 the company has duped around 7,000 investors to the tune of ₹700 crore,” said Rajendra Sangale, senior inspector, unit-7 of EOW.

Over 400 investors from Mumbai and Pune in Maharashtra, Bengaluru in Karnataka, Goa and other states as well as some NRIs have already approached the police with relevant documents and recorded their statements, an EOW officer said.

The company has bought land parcels, most of which are in Raigad district. However, the process of buying the agricultural lands allegedly involved irregularities. “We are trying to find out where exactly investors’ money was used or diverted. The process of collection of evidence has begun,” said Sangale.

EOW has been conducting a preliminary inquiry into the matter since the past few months, and after it found that a cognisable offence can be made, a case was registered at Vinobha Bhave Nagar police station. It was later transferred to EOW.

The police registered the case on the complaint of Lislot Ludusswami Reddy, an investor, who lost ₹63,76,800 to the fraud.

Police sources said investors from Pune have also registered a case against the company around a month ago as the company has plots in Pune district.

The firm did not respond to calls and messages from HT.