KOCHI: Around 50 people have approached the Kochi city police accusing Bengaluru-based real estate developer Hoysala Projects Ltd of defrauding them of over Rs 30 crore that they collectively invested in new apartment projects at Kusumagiri along Infopark Road in Kakkanad.
Based on the complaint of Sathyanarayanan Gopinathan Nair from Aluva, one of the investors, the Infopark police have registered a case of cheating and criminal breach of trust under the IPC.
As per the complaint, Hoysala Projects allegedly deceived investors, causing them financial distress, and without timely intervention, their lives would be ruined. Sathyanarayanan alleged the issue dates back to 2013-2014, when Hoysala Projects launched a development project featuring two 13-storey towers comprising a total of 128 flats. He said the builder promised modern amenities, including a shopping mall.
At the time, construction of around 11 floors had been completed, attracting numerous investors, who paid 25% of the flat’s cost as part of the initial payment schedule, but the builder failed to complete the project even after collecting the money, he alleged.
“After getting no response from the developer for nearly five years, we approached the Kerala Real Estate Regulatory Authority (K-RERA) in 2021. The authority directed the developer to complete the project and later appointed a commission to investigate the delay. However, upon learning about the investigation, the developer unilaterally cancelled the agreements and allotments, and issued cancellation notices to 50 investors,” Sathyanarayanan alleged.
“Many of us invested our retirement savings, personal funds and bank loans, with the assurance the apartments would be handed over by 2016. I paid `58.32 lakh for a 2BHK apartment of 1,512 sq ft, with only around `2.5 lakh remaining at the time of handover. This was my entire life’s savings, supplemented by loans from multiple banks,” said Sathyanarayanan, a retired chief engineer from the shipping sector.
An officer with the Infopark police station said they initially received a mass petition from the Flat Allottees Association, followed by an individual complaint.
“Based on this, we registered a case naming the builder firm as the primary accused, and its MD T S Satheesh and CEO Vinod Kumar as the second and third accused,” the officer said, adding, “The investigation is in its preliminary stage and further details cannot be disclosed at this point.”
Developer denies allegations
Denying the allegations, Hoysala Projects Ltd said the complainants did not pay the remaining amount and the case is now before K-RERA.
“We informed the customers on more than two occasions in 2023 that the Occupancy Certificate (OC) was ready and they needed to pay the balance amount to receive the keys. Instead, they approached K-RERA after one-and-a-half years claiming they were cheated. Even after completing most of the payments, they are now seeking relaxation to adjust the remaining amount as delay compensation,” said Satheesh T S, MD, Hoysala Projects Ltd.
As per the RERA Act, customers must pay the remaining amount within two months of receiving the OC or the agreement will be cancelled. Since they failed to do so, we terminated the agreements, Satheesh said.
Allegations
Builder collected payments but didn’t complete twin-tower project launched in 2013
Developer cancelled allotments after K-RERA launched probe into project delay
Complainants claim life savings were lost