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Karnataka government to take action against Real Estate firms - Tollybeats

Karnataka government to take action against Real Estate firms

Updated | July 31, 2017 11:29 IST

The State government of Karnataka is going to take severe action against 10 real estate firms for allegedly cheating the people, based on the CID report.  The Central Investigation Department(CID) has deeply investigated real estate firms for their alleged irregularities after receiving 422 cases against 10 release estate companies.

Nearly 18 lakh people were cheated by these companies worth 3,273 crores in the projects. These real estate firms manipulated the people with all sort of fine and sweet words by making 17, 93,480 people invest the total amount 3,273 crores in their projects. The Senior CID officer said that these companies had used film stars to lure customers.

The CID officer who confirmed that they initiated action on the real estate companies which were behind this huge scandal were Agri Gold, Hindustan Infracon, Dreamz Infra India Ltd, TGS Construction Pvt Ltd, Gruha Kalyan, Seven Hills etc., All these firms had convinced the customers that they will get properties at cheaper rates.  These 422 cases were registered in between the years 2013-16.

The CID team which investigated these cases have confirmed retired government employees, ex-servicemen, private company employees, and businessmen were the major victims of these real estate firms’ scandal. Among these victims, some invested money even without taking any documents. 

The CID Officials who submitted the report to Karnataka State government are recommended to take further action on these real estate companies which put nearly 18 lakh lives at stake. In their report, they stated that these real estate firms invested people’ money in film production followed by buying luxury cars and owned fixed deposits in several banks.

The Karnataka government has to take severe action on these companies which cheated and misused public money, said CID officials.


Keywords: Karnataka State government, 18 lakh people cheated by 10 real estate companies, 3273 crores cheated by 10 real estate firms, Agri Gold, CID investigation, CID investigation on Karnataka real estate fraud