Several property buyers in Ahmedabad, Gujarat have accused a group of local real estate developers of fraudulently collecting ₹2.22 crore under the promise of delivering property units that allegedly never materialised, police and investor sources said on Friday. The complainants allege that the developers accepted hefty advances and booking amounts but failed to fulfil contractual obligations, sparking both financial loss and emotional distress among investors.
According to the FIR and investor testimonies, the accused developers had promoted residential plots and apartments through aggressive marketing campaigns, promising timely possession, registered conveyance documents, and attractive returns on investment. Buyers many of whom pooled life savings, fixed deposit funds, or loans said they were persuaded by glossy brochures, site visits that appeared legitimate, and assurances of prompt legal formalities.
How the Alleged Scam Unfolded
Investors allege that:
- They were asked to pay booking amounts and instalments ranging from several lakhs to crores.
- Sale agreements were signed without thorough legal scrutiny.
- Promises of completion timelines and government approvals were repeatedly delayed.
- Document requests were dodged or deferred indefinitely.
In many cases, payees say they were given draft sale agreements or unsigned papers, with vague assurances that title deeds and official registrations were “in process”. Multiple investors told police that, even after paying instalments spanning months, they received neither possession nor registered documents.
One aggrieved investor said, “We paid instalments trusting their word. But each deadline was shifted, and every query was ignored. Now we fear we’ve lost our money and have no legal title.”
Police Action and FIR Filed
Following a collective complaint lodged at an Ahmedabad police station, authorities registered an FIR under sections related to criminal breach of trust, cheating, and fraud (Indian Penal Code). The total amount involved in the complaints was put at ₹2.22 crore, based on investors’ submitted bank transfers and receipts.
A senior police official said, “We are investigating allegations of systematic cheating. Evidence collection, financial tracking, and site validation are underway. If culpability is established, arrests and arrests could follow.”
Cyber and financial transaction teams have also been engaged to trace bank accounts, money flow, and possible involvement of intermediaries such as brokers or collection agents.
Investor and Property Market Concerns
The case has triggered wider concerns in the Ahmedabad real estate market, which has seen renewed interest from buyers despite pandemic-era slowdowns. Legal experts say:
- Buyers must conduct title due diligence before making payments.
- Sale agreements should be vetted by qualified property lawyers.
- Transactions should be done through verified channels and escrow accounts.
Real estate brokers not associated with the accused emphasise that genuine developers typically operate through clear timelines, transparent approvals, and registered agreements.
What Authorities Are Doing
Investigations now include:
- Site visits to the properties in question
- Verification of government approvals and land titles
- Interviews with complainants and developer representatives
- Bank record scrutiny for suspicious transaction patterns
Police have warned that those found guilty could face stringent legal consequences, including imprisonment and financial penalties.
Advice to Buyers
Experts urge property investors to:
- Check RERA registration and approvals
- Avoid paying large sums upfront
- Insist on registered sale deeds
- Seek independent legal advice before signing agreements
The Ahmedabad developers’ case serves as a cautionary reminder of how lucrative property promises can sometimes mask fraud, and how due diligence is essential before large financial commitments in real estate.
Authorities say the investigation is ongoing, and more details may emerge as police progress with evidence collection and legal proceedings.
