Unitech's Chandras in cop net for fraud case

Ajay and Sanjay Chandra arrested for not developing a project in Gurugram

A Delhi court on Saturday sent construction major Unitech’s promoters Sanjay and Chandra and Chandra to police custody till April 3, in an alleged fraud case related to a real estate project in Gurugram.

The Chandra brothers were arrested in the morning by the Economic Offences Wing (EOW) of the Delhi police. The investigating agency appealed to Metropolitan Magistrate Ashu Garg that custodial interrogation of the accused was required to find out the money trail and the beneficiaries of the transactions.

The agency, seeking remand for three days, also said the accused were not cooperating with the investigation.

The counsel for the accused, opposing the remand plea, said the police had searched the premises of the accused, who could not be compelled to give any incriminating evidence against themselves. 

“The accused were arrested for not developing a project, Anthea Floors, at Gurugram,” an investigating officer said, adding 91 people had invested Rs 35 crore in the project.

Another senior police officer said, “They (Chandras) allegedly fraudulently took money from investors, and parked it in a shell company abroad. They did not even have valid permissions before starting the project.”

Unitech refrained from commenting on the issue. 

This is not Sanjay Chandra’s first brush with the law. Earlier, he was arrested by the Central Bureau of Investigation in relation a 2G case. Chandra had bid and won the licence for a telecom project which he later sold to Norway-based Telenor.

According to the police, there are about 91 cases against the Chandras. They have been booked under the Indian Penal Code sections 406, 409 (breach of trust), 420 (cheating) and 120(b) (concealing criminal offence).

Over two dozen home buyers of Unitech’s housing projects in Noida and Gurugram had approached the National Consumer Disputes Redressal Commission (NCDRC), after the builder had failed to give them possession of their flats in 2012 — the deadline according to the schedule. 

The consumer forum had asked Unitech to refund the money to the home buyers with interest.

On January 12 this year, the Supreme Court directed that Rs 2 crore deposited by Unitech with its registry be distributed among 39 home buyers, who sought refund of their amount for delay in handing over the possession of flats in the Vista housing project in Gurgram.

The Supreme Court on February 20 slapped a penalty on Unitech for delaying delivery of flats. The company was also to deposit 14 per cent on Rs 16.55 crore invested by 39 home buyers.

Last month, the Consumer Disputes Redressal Commission in Chandigarh sentenced Unitech Chairman Ramesh Chandra and managing directors, Ajay and Sanjay, to three-year-long jail terms for not complying with the court’s order.

The court has also issued non-bailable warrants against Unitech’s chairman and two MDs, and charged them a fine of Rs 10,000 each. In the last week of March, the Supreme Court directed Unitech chairman and managing directors to be present in the court on May 5, in connection with a petition over a proposed scheme of compromise between the company and some home buyers in its projects.

The court also asked the builder to submit its final proposal for the completion of its pending projects.

Inputs from the Press Trust of India