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Chennai: A city-based real estate developer was arrested by the Bangalore police in connection with a Rs 20-crore scam in Tamil Nadu and a Rs 7-crore land scam in Bangalore on Wednesday.
Officials of the Central Crime Branch (CCB) of the Bangalore police arrested Manivannan, director of Chennai-based JBJ City Developers. Confirming the arrest, a police official of Indiranagar police station in Bangalore, said over telephone, “Other accused in the scams were arrested earlier. The CCB has now nabbed the main accused, Manivannan.”
The city police commissioner’s office and the suburban police commissioner’s office in Chennai had received a number of complaints from people who were cheated by the company. With the arrest of Manivannan, the police have finally managed to bust a racket that came to light five months ago.
The case came to light when people complained that JBJ City Developers had collected money for land and then failed to allot plots. The Bangalore police earlier arrested Shivakumar S, director, Justin Devadoss, chairman and MD of the company, and another person. The police recovered Rs 10 lakh and other documents from them but Manivannan was absconding.
Bangalore police commissioner Shankar Bidari handed over the case to the CCB, which found that the company had cheated people of Rs 7 crore in Bangalore and more than Rs 20 crore in Tamil Nadu.
The company, which had offices in Chennai and Bangalore, would take money from people and then not register land in their names. Instead it issued several cheques, which could not be cashed. When the buyers approached JBJ, they were allegedly threatened. The Bangalore police are seeking assistance from their Tamil Nadu counterparts in solving the case.
The Economic Offences Wing (EOW) of the Tamil Nadu police commenced investigations into the multicrore fraud last week. More than 1,000 victims thronged the EOW office to file their complaints. Almost all the victims shared the same story of being sold a dream of owning land without paying much money.
Complainants said they neither got the land nor their money back. EOW officials alleged that a number of officials in the revenue department and registration office operated hand-in-glove with Devadoss and Manivannan.
“They promised us 10% commission if we promoted the investment schemes among locals,” said Shalem, who worked as an executive for JBJ. Victims from Uthiramerur, Tiruvallur and Vandavasi have also been cheated to the tune of several crores.