CA dupes 300 investors

A 47-year-old chartered accountant has been arrested for cheating investors of a housing project in Greater Noida. Over 300 flats were allotted against proposed availability of 140 flats, and Rs 60 crore was financed by banks and financial institutions, police said on Wednesday.

Builder Mahim Mittal, a resident of Noida sector 50, was held in connection with three cases filed with anti-land and building racket section of Delhi Police’s economic offences wing.“He was wanted over a project launched by Golf Course Sahkari Awas Samiti named ‘Shivkala Charms’ at Greater Noida,” said Mangesh Kashyap, Additional Deputy Commissioner of Police (Economic Offences Wing).

The victims alleged that the firm has not delivered the flats as promised to be delivered by the end of December, 2008. 

Most of the allotted flats in the project were financed by PNB Housing Finance, LIC Housing Finance, HDFC Bank and Axis Bank.

“The financial institution extended loans to the extent of 90 per cent of the total consideration amount and directly transferred money to the firm,” Kashyap added.

It is alleged that they kept on demanding instalments even when the project was abandoned by the builders.

Police have also found that several flats were also allotted to more than two-three persons and financial institutions advanced more than one loan on the same flat, but to different persons. There were also allotments in respect of non-existing flats.

Greater Noida Industrial Development Authority has also confirmed that the firm had filed a completion certificate on December 29, 2009 and the authority has dismissed it. The lease deed granted also stands cancelled.

During investigation, it was further revealed that funds of the firm collected from investors were regularly transferred to its sister concern Advantage Engineers and Developers, whose directors are the family members of Mittal.

Several bank accounts related to various group companies have also been freezed.

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