VIJAYAWADA: Patamata police on Saturday booked three persons for reportedly cheating hundreds of gullible persons by promising them cheaper residential flats, and absconding with cash to the tune of Rs 7 crore. The accused were identified as Patnala Srinivas Rao, Manoj Kumar and Ravi Teja.
According to the police, the accused floated a real estate firm, MK Constructions, and anointed themselves as directors of the firm. They claimed that their firm has 15 acres of land near Gannavaram and gave advertisements in a newspaper that they are offering flats for a sum of Rs 18 lakh (original cost is around Rs 40 lakh) for those who book them within a stipulated time. They also appointed marketing agents to market the flats by paying huge incentives.
Believing their claims, hundreds of customers flocked to the firm and invested in the flats. When the accused failed to handover the flats, the customers realised that have been taken for a ride. “To create a positive impression about the firm, the accused even opened branches in Hyderabad and Vijayawada and used the newspaper advertisements as a tool for the crime. Without purchasing land, the accused sold flats with duplicate agreements and promised returns. Special teams have been formed to nab the absconding trio,” said the Patamata police.
Flat fraud
The trio claimed that their firm has 15 acres of land near Gannavaram and gave advertisements in a newspaper that they are offering flats, whose original worth Rs 4o lakh, for Rs 18 lakh.