V Bhaskar Reddy (47) from Guntur and a resident of Doddakallasandra and Tirumala R Reddy (53) from Kalahasthi and a resident of Jayanagar are the arrested.
The suspects placed advertisements in newspapers claiming they have launched residential projects in the name of Ishwarya Project, Presidency Group, etc, promising to allot sites at cheaper rates near Bidadi, Hoskote, Devanahalli and Mysore.
They collected 40 per cent of the total value of each site as advance totalling up to Rs 50 crore since 2006.
They took a few customers to some agriculture land, but did not convert them for residential purposes. They absconded when the customers demanded allotment of sites or return the money.
Ten cheating cases against each of them were registered with Basaveshwarnagar police and seven with Mahalakshmi Layout police.
The police suspect the involvement of several realtor groups and individuals in the racket. The investigation is in progress, added the police.
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