Pujit Aggarwal of Orbit Corporation was arrested by Azad Maidan police here under section 420 (cheating) of the Indian Penal Code (IPC) in the morning.
Capri Global Capital Limited, the complainant, had paid Rs 2.53 crore for three flats at Orbit Residency Park in Sakinaka, a project of Aggarwal and his father Ravikiran Aggarwal.
The Aggarwals had mortgaged the project with LIC Housing Finance Limited (LICHFL) for a loan and were supposed to deposit sale proceeds of all the flats in an escrow account with HDFC bank.
However the money was not deposited in the escrow account, and when LICHFL took over the possession as Aggarwals defaulted on loan repayment, the finance company did not recognise the claims of Capri Global Capital on the flats in the project, the complaint said.
Meanwhile, a spokesperson of Orbit Corporation
rebutted the allegations that the firm misappropriated funds.
"All the money that was received was spent on the project," the company said in a statement here.