Indore (Madhya Pradesh): The Economic Offences Wing (EOW) Indore registered a case against the directors of three real estate firms for allegedly defrauding a landowner and multiple flat buyers in the Utkarsh Paradise Colony of Rs 3.12 crore.
The accused defrauded not only private individuals but also the state government by evading stamp duty. The three accused, who are brothers, allegedly transferred properties between one another through internal agreements to avoid paying the required statutory fees.
The action was taken against Sajid Sheikh (Director, AM Builders and Developers), Mohammad Rashid Sheikh (Director, Almoin Devcon Pvt. Ltd.) and Mohammad Javed Sheikh (Director, JSR Reality) following an investigation into a multi-storey building project.
According to EOW SP Rameshwar Singh Yadav, the complainant Gautam Jain, purchased a residential plot (17,151 sq. ft.) in Utkarsh Paradise in 2012. In 2013, he entered into a development agreement with Sajid Sheikh to construct a multi-storey building named "AM Ginni.
Sajid Sheikh issued six cheques totalling Rs 1.5 crore to Gautam Jain, all of which were bounced. Despite not paying the landowner, Sajid Sheikh used a Power of Attorney to sell the land to his brother Mohammad Rashid Sheikh of Almoin Devcon Pvt. Ltd and later he transferred to another brother Mohammad Javed Sheikh of JSR Reality.
To settle the dues for Plot No. 307, the accused promised Jain a different plot in "Gold City Colony" (Mhow) via an Rs 100 stamp paper agreement, but never gave the legal registration. The builders constructed 52 flats on the disputed land. Buyers like Kamlesh Sainani who paid Rs 15.65 lakh and Snehlata Handa who paid Rs 27.64 lakh for six flats have been waiting 12 years for possession as the construction at the site remains stuck.
The investigation revealed that the trio conspired to grab the land and embezzle funds from both the original owner and flat buyers without delivering the promised flats. The accused has cheated Jain of Rs 2.70 crore and flat owners of Rs 42 lakh.
A case was registered against the accused under sections 409 (Criminal breach of trust), 420 (Cheating), and 120-B (Criminal conspiracy) of the IPC and further investigation is underway.
