Police Investigate Real Estate Companies for Big Money Fraud

The Cyberabad police's special unit for money crimes is investigating several real estate companies. They are looking into claims that these companies have cheated many people out of large sums of money. The police are working to find out what happened and help those who were affected.
By Newsroom | Crime, Hyderabad |

Reports indicate the Cyberabad Economic Offences Wing (EOW) has opened investigations into several real estate firms, citing allegations of significant financial misconduct. These probes appear to focus on claims of cheated investors and homebuyers, involving substantial sums of money and questionable business practices. The scale of alleged fraud, as presented in various complaints, ranges from single cases involving crores of rupees to broader schemes potentially affecting hundreds of individuals.

Allegations of Deceptive Practices and Financial Mismanagement

Investigations by the Cyberabad EOW have been initiated following complaints from individuals who claim to have been defrauded by real estate developers. The allegations span several distinct but related issues:

Cyberabad Police EOW books real estate firm - 1

  • Inflated Property Costs and Delayed Construction: In one case, a buyer reported that the agreed-upon area of her flat was unilaterally increased, subsequently raising the price. Despite substantial payments, construction has reportedly fallen behind schedule.

  • Duplicate Property Sales and Loan Fraud: Concerns have been raised regarding the same properties being sold to multiple buyers. Furthermore, evidence suggests apartments have been mortgaged to banks for loans, even while under sale agreements with individual buyers.

  • Misappropriation of Funds: Investors have come forward alleging that funds collected for construction projects were transferred to unrelated entities or used for purposes other than those initially agreed upon.

  • Threats and Lack of Formal Agreements: In at least one instance, a developer is accused of issuing threats when a formal Memorandum of Understanding (MoU) was requested by an investor, suggesting a lack of transparent dealings.

Scope of Financial Irregularities

The financial scope of the alleged frauds under investigation by the Cyberabad EOW is considerable. Specific cases detailed include:

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  • White Waters Constructions: Accused of collecting ₹9.82 crore from 15 buyers for unconstructed flats. The complainant reported paying ₹11 lakh for a 1,650 sq ft flat, which was later increased in size and cost to ₹92.10 lakh. This same property was allegedly registered in another person's name, with a ₹1.27 crore loan taken against it. This firm is also mentioned in connection with a broader alleged scam amounting to approximately ₹270 crore from around 500 people.

  • Fortune Realtors and Developers LLP: A designated partner is being investigated for allegedly cheating investors out of ₹24.28 crore. Funds totaling ₹15.75 crore were reportedly transferred by partners.

  • Unspecified Real Estate Firm: A complaint against directors Ajay Salike, Tanay Salike, and Vijaya Lakshmi Salike alleges a fraud of ₹270 crore. A buyer reported paying ₹79.94 lakh for a flat and later discovering the same apartment was mortgaged for a ₹1.27 crore loan.

  • JJ Infra India Pvt Ltd: Two individuals, Tammineedi Sri Venkata Ramana Prasad (managing director) and Kosaraju Venkata Ratnam (marketing agent), were arrested for defrauding eight persons of ₹3.56 crore. The investigation suggests the total defrauded amount could reach ₹7 crore. Payments were reportedly taken in cash, with bounced cheques issued and ownership documents falsified.

  • Film Producer/Realtor Pradyumna Chandrapati: Along with his wife Ch. Lakshmi Tejaswini and two associates, he is accused of defrauding a businesswoman of nearly ₹11 crore through real estate and film production investments. This included a ₹5.09 crore transfer to Admax Digi Labs for real estate projects and ₹4.68 crore for a property with assurances of repayment.

Regulatory Framework and EOW Mandate

The Cyberabad EOW is the unit tasked with investigating economic offenses. Its purview, as outlined on the Cyberabad Police website, includes:

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Cyberabad Police EOW books real estate firm - 2

  • Organized cheating cases where the damage is ₹3 crore or more.

  • Multi-level marketing and money circulation schemes.

  • Land-related cases involving fake documents, forgery, impersonation, and double registration, also above ₹3 crore.

  • Organized job fraud with significant monetary loss.

The EOW operates directly under the control of the Deputy Commissioner of Police, EOW, Cyberabad, and is responsible for investigating significant and sensitive economic offenses. The cases are being registered under various sections of the Bharatiya Nyaya Sanhita (BNS) and the Telangana Protection of Depositors of Financial Establishments Act. In the case of JJ Infra India Pvt Ltd, specific sections of the Indian Penal Code (IPC) related to criminal breach of trust, cheating, forgery, and using forged documents were invoked.

Recoveries and Enforcement Actions

The Cyberabad EOW has reported substantial actions in financial fraud cases, indicating an active enforcement posture. As of December 23, 2025, the unit reported:

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Cyberabad Police EOW books real estate firm - 3

  • Arrests of 111 individuals in financial fraud cases.

  • Recovery and freezing of ₹37.67 crore, including ₹26.17 crore in illicit funds and attached properties worth ₹11.50 crore.

  • Specific cases where individuals collected approximately ₹22.55 crore from victims, despite falsely claiming a turnover of ₹1,000 crore.

These figures suggest a pattern of significant financial crime within the region and a proactive approach by law enforcement to address such offenses.

Expert Analysis and Societal Impact

The nature of these allegations points to sophisticated schemes that prey on public trust in the real estate sector. The involvement of multiple parties, including directors, partners, and agents, suggests a degree of organization in these alleged fraudulent activities. The EOW's focus on cases exceeding ₹3 crore indicates an effort to prioritize large-scale financial crimes that have a significant impact on victims. The repeated use of property mortgaging as collateral for loans while simultaneously selling the property to buyers represents a complex method of defrauding multiple parties. The reliance on cash payments, bounced cheques, and forged documents, as seen in the JJ Infra India Pvt Ltd case, highlights common tactics used to obscure transactions and evade detection. The widespread nature of these allegations suggests a systemic issue that requires vigilant oversight of real estate dealings.

Conclusion and Forward Outlook

The Cyberabad EOW is actively investigating multiple real estate firms for alleged fraud, involving substantial financial claims and complex deceptive practices. Investigations are ongoing, with legal actions initiated under relevant financial and criminal statutes. The scale of the alleged fraud, particularly the figures of ₹270 crore and ₹24.28 crore, indicates potentially widespread impact on a large number of individuals. The EOW's past successes in recovering funds and arresting suspects suggest a determined effort to address these economic offenses. Future developments are expected to involve further legal proceedings, potential asset seizures, and the identification of any additional parties involved in these alleged schemes. The stated goal of the Cyberabad Police, "Your safety, our concern," frames these investigations within a broader public interest mandate.

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Sources:

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Frequently Asked Questions

Q: What is the Cyberabad EOW investigating?
They are investigating several real estate companies for alleged large-scale fraud. This includes cheating buyers and investors out of money.
Q: What are the main problems people are reporting?
People are reporting that properties were sold more than once, loans were taken on properties already sold, and money collected for building was used for other things. Construction is also often delayed.
Q: How much money is involved?
The amounts mentioned in complaints are very large, with some cases involving crores of rupees. One company is accused of taking about 270 crore rupees from many people.
Q: What happens to the people who are found guilty?
The police have arrested many people in past cases and have recovered and frozen large amounts of money and property.