During its investigation into the irregularities by real-estate firms in Karnataka and the financial frauds many such companies perpetrated in the country over years, the Criminal Investigation Department (CID) has found that many people who had lost their money to these fraudulent schemes are yet to approach the police and help in the investigations.
The CID revealed this while putting numbers on the massive scam on Saturday, 29 July.
As reported by The New Indian Express, 422 cases were filed against 10 firms from 2013 to 2016. It was revealed that 17,93,480 people from across the state invested Rs 3,273 crore in these firms.
So far, over 100 people have been arrested and sent to judicial custody. Over 40 officers were involved in the probe. They gathered statements and documents from thousands of victims have been used as evidence.
C H Pratap Reddy, ADGP of CID, told media persons, “The 10 companies include Agri Gold, Hindustan Infracon, Dreamz Infra India Ltd and TGS Construction Pvt Ltd, Gruha Kalyan, Seven Hills and others.”
He continued, “These firms convinced people to invest in their firms to get property at cheap prices. They had used film stars to attract customers. The firms also collected money illegally from many customers without giving any documents. They convinced them that investors will be given attractive interest within a year and assured flats and sites for cheap prices in and around the city.”
“Most of the victims are retired government officials, including ex-servicemen, private company employees and businessmen. They showed vacant areas to the customers and lured them into parting money by promising to deliver the project within promised date,” he added, as reported by The New Indian Express.
The profits made from the ponzi schemes were splurged in hosting parties for celebrities, including cricketers and film actors, buying luxury cars and film production. They also put the money in fixed deposits in several banks.
The CID officials has reportedly written to the government asking it to constitute a competent authority that can attach immovable properties belonging to these companies and auction it on priority so that money invested by people can be returned to them.