Two developers who defrauded 30 buyers arrested in Pune

Two Directors from builder W S Developers were arrested for defrauding Rs. 1.89 crores from 30 customers in their “Srushti Rejency” project, near Wagholi. In addition to the Directors, the police is looking for several agents who abetted this crime.

One of the owners who was a victim of the fraud, states that the construction of the project never started and an enquiry revealed the project was never sanctioned. The builder had promised homes at affordable rates and a zero rate of interest.

While we applaud the action of police to bring justice – it is unfortunate that we have seen several cases of fraud due to illegitimate title or lack of required approvals, just in the past few months. Before making any decision on a project, PropertyChek recommends a buyer conduct thorough analysis and background research on the builder, specifically checking the builder’s earlier projects for:

• Construction delays
• Illegal construction
• Construction quality 
• Balance sheet / financial issues (many times, this may not be possible)

In addition, buyers should confirm the builder has Title and required Approvals to undertake construction for the upcoming project. One reason for these developer delays in lack of title and / or lack of construction approvals.

We, at PropertyChek, conduct legal due diligence of properties, where we check the property title by verifying the actual government record in the registrar’s office to ensure the seller (whether builder or individual seller) has an authentic, clean title. We also check builder has the required approvals for construction of the project.

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