A local New Delhi court sent Unitech Ltd.'s Managing Director Sanjay Chandra and his brother Ajay Chandra in to Police custody till Monday for allegedly not developing a real estate project in Gurugram despite receiving funds from customers.
The brothers were produced before the court at around 2 pm on Saturday after the Economic Offence Wing (EOW) of the Delhi Police arrested them.
The EOW informed the court that the Chandra brothers raised around Rs 360 crore from the customers and the banks for their project Anthea floors in Gurugram.
The investigation was initiated on charges of cheating, criminal conspiracy and other offences, after the home buyers lodged a complaint for not receiving their flats on time.
The EOW said the construction was started without necessary licences, adding that the two Escrow accounts for this project allegedly have a total of only around Rs 10.5 lakh rupees. The Police said they are investigating where the amount received from the banks and the customers went.
A non-bailable warrant was issued against the Chandra brothers based on the investigation, said the Delhi Police. The Police had sought custody of the two brothers to determine the money trail.
The Chandra brothers did not move a bail application and alleged that the arrest was illegal.
During the hearing, the counsel for the Chandra brothers said most of the flat buyers were satisfied, and there was no need to send them into remand as they are cooperating with the investigation. It is only a miniscule number which is litigating. “Even right now, we are delivering around 400 flats a month,” the counsel added.
It is learnt that the investors had also approached the Delhi High Court in this regard, a PTI report said.
The brothers were booked under Section 406 of the Indian Penal Court for criminal breach of trust, Section 420 for cheating and 120B for criminal conspiracy.
With inputs from PTI.
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