Bengaluru developer booked for Rs 62 crore fraud against housing society

Bengaluru: The Central Crime Branch (CCB) has registered a case of cheating and criminal breach of trust against two partners of a Bengaluru-based development firm, Shri Ganesh Developers, for allegedly defrauding the Telecom and Government Employees’ Welfare Housing Co-Operative Society of Rs 62 crore. 

The FIR was filed following an investigation ordered by the Joint Commissioner of Police (Crime), who heads the CCB.  According to Chunchaiah, the president of the co-op, an MoU was signed with Shri Ganesh Developers on January 23, 2015, to buy and develop a parcel of land for society members.

Over a period, society members paid a total of Rs 62 crore to the developers via RTGS transactions through three separate MoUs. However, the partners of the firm — Y M Ramagopal and K Narayanaswamy — allegedly misappropriated the funds and failed to develop the plot as per the agreement. Another partner, Nagesh Shetty, passed away after the initial MoU was signed. 

The fraud came to light when the developers reportedly showed no intention of fulfilling their contractual obligations, prompting the society to lodge an official complaint. A preliminary inquiry was conducted, and the report was submitted to senior officials. Based on the findings, the Joint Commissioner of Police (Crime) ordered a formal investigation.  The CCB has registered a case under relevant sections of the Bharatiya Nyaya Sanhita (BNS).