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Multi-crore scam in real estate unearthed

Ashok Kumar

A promoter of Rajshree Group arrested

NEW DELHI: A multi-crore scam in real estate has been unearthed by the Economic Offences Wing of the Delhi police with the arrest of a promoter of Rajshree Group who allegedly floated real estate entities and cheated over 600 investors.

According to the police, Srinivas Sharma along with his accomplice Rakesh Jain, who is absconding, launched two real estate entities in the name of Boutanika Infrastructure, a partnership firm, and Boutanika Infrastructure (P) Ltd company early last year.

Two different brochures were printed by the Directors of Boutanika Infrastructure (P) Ltd. with respect to details and locations of the proposed 280-acre township on National Highway-91. The brochure projected Rajshree Group as an Indo-Swedish joint venture. The company was shown as one of the fastest growing real estate developers in the National Capital Region, whereas it had no history of any real estate development projects and the accounts of both entities were opened with zero balance.

Interestingly, the promoters of the company started the purchase of land after the inflow of money from the investors started. Srinivas and Rakesh put huge advertisements in newspapers, magazines and journals and even wrote expert articles in magazines as real estate consultants.

More than 600 investors fell prey to the hype created by the company and invested over Rs. 13 crore in the proposed township of Boutanika Infrastructure (P) Ltd. Also, Rs. 71 lakh was received in cheques from one A. K. Govil of Govil Properties and Amit Yadav in favour of Boutanika Infrastructure as advance payment for 300 plots measuring a total of 67,500 square yards of land. The payments were received even before the two entities had come into existence.

When the two demanded relevant documents in respect of the land in question, the developers avoided the matter on one pretext or the other. Further inquiries by the two revealed that the project site was located in Dadri and not in Ghaziabad as assured by the developers.

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