Pujit Aggarwal, CEO and MD of realty firm Orbit Corporation Ltd, was arrested Thursday for allegedly cheating a buyer of three flats in a residential tower in Saki Naka.
Marine Lines based firm Capri Global Capital Limited had lodged a complaint at Azad Maidan police station after being alerted that Orbit Corporation had defaulted on loan payment to LIC Housing Finance Limited (LIC HFL), which had taken symbolic possession of the entire building, including the three flats the complainant had booked.
The police booked Pujit Aggarwal and his father Ravi Kiran Aggarwal, the firm’s Executive Chairman for cheating, criminal conspiracy and criminal intimidation under the IPC and under the Maharashtra Ownership of Flats Act.
According to the complaint, Capri Global’s promoters had booked two 3-BHK flats in the then under-construction Orbit Residency Park in Saki Naka in June 2010 and paid Rs 2.45 crore.
In September 2010, the complainant booked another 3 BHK flat in the same project valued at Rs 1.2 crore and paid Rs 8 lakh over the next three years. The police said that in June last year, the complainant read a newspaper article in which LIC HFL had taken symbolic possession of Orbit Residency Park.
According to the loan agreement, Orbit Corporation was to inform LIC HFL of each sale made in the project and deposit the money in an escrow account. But Orbit Corporation failed to do so and instead kept the money with itself,” said a senior police officer.
“Aggarwals cheated us by not depositing the money in that account and so when LIC HFL took over possession after they failed to repay the loan, they de-recognised many investors like us,” said a spokesperson for Capri Global.
After making inquires at LIC HFL, the complainant found that the three flats booked had been attached. The police claimed that when the complainant approached the Aggarwals for an explanation, they were evasive in their answers.
Pujit Aggarwal was produced at Esplanade Court on Thursday and remanded in police custody till September 12. Ravi Kiran Aggarwal is yet to be arrested. “Investigations into his role are underway,” an officer at Azad Maidan police station said.