HYDERABAD : The Cyberabad Economic Offences Wing (EOW) has arrested a 50-year-old businessman for allegedly cheating 32 persons of approximately Rs 60 crore in a pre-launch offer scam.
The accused, Guntupalli Srinivasa Rao, is the Managing Director of GSR Infra Group Pvt Ltd. In the guise of collecting money as part of a pre-launch offer for residential villas to be built at Kollur village, he cheated several prospective homebuyers.
Srinivasa, along with two of his associates, created and distributed brochures and advertisements for customers. The accused promised to sell some villas at a lower price under the pre-launch offer.
Trusting the offer, 32 people paid nearly Rs 60 crore to the accused via bank transactions and through cash. After collecting the money, the accused executed a few unregistered sale agreements with the victims and promised them that the project would be completed and the villas would be handed over to them within three years. “Otherwise, they promised to return the entire money with 24% interest,” the police said.
However, the company failed to fulfil the promise and the victims realised that the company had not even started construction work at the site. Upon inquiry, the accused said the proposed land was under legal complication.
After realising that they were cheated, one of the victims registered a case with the EOW. The police initiated investigations and arrested the accused. A case under Sections 420, 406 and 409 of the Indian Penal Code on charges of cheating and criminal breach of trust was registered against Srinivasa.