Over 11,000 Properties in Mumbai Involved In Housing Scam

Due to the lack of response to their complaints and FIRs with state authorities, the buyers have now turned to the Bombay High Court (HC).

Over 11,000 Properties in Mumbai Involved In Housing Scam
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According to reports, 11,500 apartment buyers have been caught up in a major housing complex fraud scheme involving a single developer. Due to the lack of response to their complaints and FIRs with state authorities, the buyers have now turned to the Bombay High Court (HC).

To gain attraction from middle-class buyers, the builder hired Bollywood celebrities as brand ambassadors. In this case, fraudulent documents and strategies to win over customers are involved. The high court set September 12 as the date for the subsequent hearing.

A criminal writ petition was filed against the builder under Article 226 of the Constitution. The petition filed by nineteen petitioners and numerous other flat purchasers stated buyers being ambushed in purchasing flats within projects by M/s Karrm Infrastructure (Pvt) Ltd and its directors.


These projects include:

  • Karrm Residency at Dhasai village in Shahapur;
  • Karrm Panchtatva at Kasagaon in Shahpur;
  • Karrm Brahmaand at Kelwe Road in Palghar.

The Karrm Residency project consists of four sectors and 3,140 apartments in total. Even though the project was supposed to be finished by December 2014, many facilities are still unfinished.

Phases 1, 2, and 3 of the Karrm Panchtatva are in Kasgaon, Shahpur District. Phase one constructions are still at the plinth level, while phases two and three are undeveloped ground.

The goal of the Karrm Brahmaand Affordable Homes project in Palghar's Kelve Road was to build more than 5,000 apartments and retail spaces. Despite the sale of about 4,500 flats/units, development has not yet started.

Prabhuram Giri, one of the eight petitioners from the Shahpur project, is 60 years old and lives in the Nirbhay building in Karrm Residency Sector 3 in Shahapur. He is also the whistleblower and petitioner number 1. On July 25, 2013, he paid Rs 16.35 lakh for flat no. 401, a one-bedroom apartment on the fourth floor.

Another petitioner from the same project, sector 3, is Swati Dhavse. By signing into an agreement on April 3, 2012, for R8.55 lakh, she acquired the apartment no. 101 in Building Aarju's C wing after paying the whole amount.

On March 9, 2017, Rajendera Chavan, 56, petitioner no. 5, made a reservation for flat no. 2 in the Aachal building B wing for 30 lakh, with a partial payment of 3 lakh. He is yet to acquire possession of the property.

A bank loan and now ongoing EMIs were used to purchase flat no. 301 in Vaayu B wing on April 16, 2012, by Nagina Singh, a 54-year-old school assistant teacher from Bhandup (petitioner no. 4). She is still expecting access to the flat, though.

Important documentation like the non-agriculture (NA) certificate, the title clearing provided by an advocate, and the appropriate approvals were included in the sale agreement between the developer and the flat purchasers (petitioners 1 to 8). This emphasizes the accused's ostensible desire to provide promised amenities and guarantee a smooth handover.

In the case of Karrm Residency Sector 3, Giri and the other petitioners disclosed that the building quality was appalling, leaving the entire complex in disrepair and the promised amenities lacking. In 2018, work on the site abruptly stopped, leaving it unfinished. The project's unfinished status is highlighted by the absence of necessary amenities including an approach road, street lights, sewage treatment facilities, water connections, and even lifts.

"Another flat buyer received a letter from the developer dated January 29, 2014, to pay interest to the developer for infrastructure maintenance, water meter, electricity, etc," exclaimed Giri.

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