BENGALURU: More than a hundred homebuyers — many of them retirees — say they invested their savings in a Pune housing project that never materialised. Now, a police investigation in Bengaluru alleges a web of mortgage transactions, bank loans and development agreements that left the project stalled and over ₹130 crore under scrutiny.
A Project That Never Reached Completion
In 2019, the Mantri Vantage residential project in Pune was scheduled for completion. Developed by Shore Dwellings Pvt. Ltd., a subsidiary of Mantri Developers Pvt. Ltd., the project promised 123 flats in the rapidly developing neighbourhoods of Kharadi and Ghorpadi in Haveli taluk.
Buyers paid advances and instalments totalling more than ₹70 crore. Many of them were senior citizens who had invested life savings or taken on equated monthly instalments (EMIs) in anticipation of timely possession.
But construction slowed and then stalled. The Covid-19 pandemic further disrupted timelines, and by 2021, according to buyers, the promoters had become largely unresponsive. Only partial structures stood on the site.
In December 2024, buyers noticed a possession notice at the project site and say they discovered financial and legal arrangements that had not previously been disclosed. Several of them filed criminal complaints, alleging financial irregularities and a lack of transparency. Further investigations are underway.
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Mortgages, Loans and a Mounting Debt
According to the complaint, Shore Dwellings mortgaged the project properties to Yes Bank and obtained loans of approximately ₹40 crore. The loan account was classified as a non-performing asset (NPA) in 2019.
The loans were later taken over by ICICI Bank. The complaint alleges that ICICI Bank sanctioned facilities totalling nearly ₹130 crore, of which ₹60.67 crore was disbursed.
Buyers contend that despite minimal construction activity, funds were released in violation of project finance norms. Portions of the loan amount were allegedly diverted for purposes unrelated to construction, though the banks’ positions on these allegations were not detailed in the complaint.
By the time buyers became aware of the mortgage arrangements, the project was already under financial stress. Some said they learned only later that the properties securing their homes had been encumbered.
Development Agreements and Alleged Irregularities
In December 2021, an agreement was executed with Kappa Developers LLP to develop the project. According to the complaint, this arrangement was entered into without adequately safeguarding the interests of existing flat purchasers.
Other accused named in the case include Nidhi Jain and Plaza Agencies Pvt. Ltd.
The complaint further states that joint development agreements had been signed between Shore Dwellings and senior developers for constructing the residential flats. Buyers allege that these agreements, along with mortgage transactions, created a complex financial structure that obscured the true status of the project.
In 2021, arrangements were reportedly attempted between the developer, lenders and a third-party developer for a takeover through a one-time settlement. The plan did not materialise.
A Case Registered in Bengaluru
The Central Crime Branch (CCB) of the Bengaluru police registered a First Information Report after a complaint was submitted to the city’s Commissioner of Police. The FIR names Shore Dwellings Pvt. Ltd. (also referred to as Mantri Dwellings), senior officials of ICICI Bank, Kappa Developers LLP and others.
The case invokes multiple provisions of the Indian Penal Code, including Section 120B (criminal conspiracy), Section 403 (dishonest misappropriation), Sections 405 and 406 (criminal breach of trust), Sections 415 and 420 (cheating), and Section 464 (forgery). Together, these sections address allegations of conspiracy, misappropriation, breach of trust, cheating and document fabrication.
Although the project is located in Pune, sources said the initial promoters operated from an office on Vittal Malia Road in Bengaluru, and that loans were sanctioned by banks and financiers based in the city. Investigators have described this as establishing a financial nexus to Bengaluru.
The FIR alleges that the housing fraud involves over ₹130 crore. For buyers who are still servicing EMIs on unfinished flats, the case represents not only a legal battle but an uncertain wait for clarity on a project that was once meant to be their home.
