Ahmedabad Police Investigate Major Real Estate Fraud Involving Privilon Group Developers
In a significant development, the Bopal police station in Ahmedabad has registered two separate complaints against developers associated with the Privilon Group. The allegations center on a sophisticated real estate fraud scheme where investors were allegedly cheated by being sold flats and shops in proposed housing and commercial projects. The crux of the matter is that these projects were floated on land not owned by the accused and lacked mandatory regulatory approvals, including those from the Real Estate Regulatory Authority (RERA).
Details of the Alleged Fraud and Police Investigation
Police authorities have revealed that the two complaints, along with information from other aggrieved investors, point to a substantial financial fraud amounting to approximately Rs 2.22 crore. This sum involves investments in proposed residential and commercial properties located in Ghuma village, situated on the outskirts of Ahmedabad. The investigation is currently focused on tracing the money trail, identifying additional victims, and determining the precise roles of the entities and individuals named in the complaints.
According to police statements, both FIRs allege a planned conspiracy involving false representations, forged Memorandums of Understanding (MoUs), misleading advertisements, and the diversion of investor funds. The accused are said to have used various payment methods, including cheques, RTGS, UPI, and cash, to collect money from multiple buyers, further complicating the financial investigation.
First FIR: Shanti Jadav's Case of Shop Investment
The first FIR was filed by Shanti Jadav, a 49-year-old farmer from Gujar village in Dhandhuka taluka. Jadav has alleged that in November 2023, he was lured into investing in a ground-floor shop in the proposed 'Richmond by 22 Storey' project at Survey number 632/A in Ghuma. He claims that individuals named Jaydeep Kotak and Hiren Amrutlal Karia represented themselves as partners of Privilon Buildcon LLP and offered him shop GF-06 at a discounted rate.
Jadav paid a total booking amount of Rs 21 lakh, comprising Rs 15 lakh by cheque and Rs 6 lakh in cash. Despite repeated assurances regarding RERA approval and construction timelines, no work commenced on the site. In a concerning turn of events, by December 2024, the site office and project boards were allegedly removed. Jadav later discovered that the accused neither owned the land nor had any written development agreement or RERA permission. He further alleged that the accused fabricated false receipts for cash payments collected from multiple buyers.
Second FIR: Jayjit Gatha's Case of Flat Booking
The second FIR was lodged by Jayjit Gatha, a 34-year-old resident of South Bopal. Gatha alleged that he and his wife booked a 2BHK flat in the proposed 'Celestial by 14 Storey' project at survey numbers 816 and 817 of Ghuma village in early 2024. The complainant stated that he paid Rs 27.6 lakh in two cheques to Privilon Buildcon LLP after being shown brochures and project boards that claimed ownership and development rights.
According to the FIR, the accused executed a notarized MoU claiming full rights to sell flats and shops. However, construction never began, and the project boards were later replaced by boards from another developer. Subsequent verification with the actual landowners revealed that no agreement had been executed with the accused and that no RERA approval existed for the project, exposing the alleged fraudulent nature of the scheme.
Broader Implications and Investor Warnings
This case highlights critical vulnerabilities in the real estate investment landscape, particularly concerning:
- Due Diligence: The importance of verifying land ownership and RERA approvals before investing.
- Regulatory Compliance: The necessity for developers to adhere to legal frameworks to protect investor interests.
- Investor Awareness: The risks associated with cash transactions and unverified project claims in real estate deals.
As the police investigation progresses, authorities are urging other potential victims to come forward. The outcome of this probe could set a precedent for handling similar fraud cases in the real estate sector, emphasizing the need for stricter enforcement of regulations to safeguard investors from such deceptive practices.
