A major alleged real estate fraud has taken a significant turn, with authorities provisionally attaching assets worth ₹17.97 crore in connection with a housing project scam. The case involves allegations of collecting crores from investors under the pretext of a residential project and subsequently diverting the funds, leaving hundreds of homebuyers uncertain about both their investments and promised homes.
The investigation has brought into focus key accused—Mulpury Sivarama Krishna, Dupati Naga Raju, and Doddakula Narsimha Rao alias Ponnari—who are linked to the builder firm behind the project. According to allegations, the accused jointly promoted a “pre-launch” scheme for a project named Bharati Lake View Towers, attracting a large number of investors with promises of residential flats.
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Project Lacks Approvals, Land Mortgaged
Preliminary findings indicate that the project did not have the required statutory approvals at the time of marketing and sale. Despite this, agreements were executed with buyers. More critically, the land on which the project was proposed had already been mortgaged to secure loans—an important fact that was allegedly concealed from investors, raising serious concerns about transparency and intent.
₹75 Crore Collected, Funds Diverted
Investigating authorities have stated that more than 450 homebuyers and investors were persuaded to invest in the project, leading to the collection of approximately ₹75 crore. Of this, around ₹17 crore is believed to have been received in cash transactions. Instead of being used for construction and project development, the funds were allegedly diverted for other purposes, including repayment of existing liabilities, servicing interest, and acquisition of personal assets.
Another troubling aspect of the case is the alleged sale of project-linked land parcels to third parties without informing the investors. Despite these transactions, the accused are said to have continued collecting advances from buyers, suggesting a pattern of sustained misrepresentation and financial misconduct.
Criminal Complaint Leads to Probe
The case originated from a criminal complaint alleging cheating, criminal breach of trust, and violations under relevant financial laws. As the investigation progressed and indications of money laundering emerged, action was taken to identify and attach assets believed to be linked to the proceeds of crime.
Officials involved in the probe have also pointed out that the funds collected from investors were routed through multiple accounts and channels, complicating efforts to trace the exact flow of money. Nevertheless, initial findings have enabled authorities to identify properties suspected to have been acquired using the diverted funds.
Experts in the real estate sector emphasize that such cases highlight the need for due diligence on the part of investors. Verifying project approvals, land ownership status, and regulatory clearances before investing is crucial. At the same time, they stress the importance of stronger regulatory oversight to detect and prevent such fraudulent schemes at an early stage.
The investigation is ongoing, and further revelations are expected as authorities continue to examine financial records and transactions linked to the case. If the allegations are substantiated, the accused could face stringent legal consequences.
The case once again underscores the importance of transparency and accountability in the real estate sector. Without robust checks and safeguards, schemes promising dream homes can turn into large-scale financial losses, severely impacting investor confidence and trust in the system.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
