Five home buyers, including a 63-year-old retired official, who invested in Mantri Developers, filed a police complaint accusing the company of cheating.
Cubbon Park police registered a case against the realty firm, Sushil Mantri, chairman and managing director of the group, and his son Pratik Mantri along with seventeen others.
The five investors alleged the company cheated them after receiving money back in 2016, promising flats at Mantri Web City apartments in Hennur.
Radhakrishna A Chawla, the 63-year-old retired official, had invested his entire earnings and savings. Chawla alleged that Mantri Developers along with officials of the Punjab National Bank Housing Finance Limited were selling schemes -- 80:20, buy back and pre-EMI -- banned by the RBI, NHB and SEBI.
Through advertisements, the developer had offered flats in Mantri Web City apartment complex along the Hennur Main Road.
Chawla stated that even two years after the investment, he did not get possession of the flat. The developer was not returning the money as per the agreement, he added.
Chawla further alleged that PNB Housing Finance Ltd officials joined hands with Mantri and violated RBI and NHB guidelines and instead of sending loan money in phases, officials paid 98% of the loan amounts to Mantri all at once, cheating the investors.
Another victim, businessman Satyan R Chawla, stated that he paid Rs 25 lakh down payment in 2016 and availed Rs 75 lakh loan to be paid in EMIs for two years till the date of possession. Neither did he get the flat nor his money.
Defaulted on EMI
There were hundreds who were taken for a ride by Mantri, another victim noted. As per the agreement, if Mantri failed to give possession of the flats to customers after two years, it had to pay the EMI. However, the firm not only failed to complete the project but defaulted on EMI, the victim said.
Sushil Mantri and 18 others, including PNB Housing Finance officials, were booked for cheating, criminal breach of trust and criminal conspiracy.
Preliminary investigation revealed that due to a financial crises, the project slowed down. Though it was to be completed in two years, only 70% was done.
DH’s repeated efforts to contact Sushil Mantri over the last two days through SMS, email and telephone received no response.
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