Who is our Mantri?

Last week, the Enforcement Directorate (ED) officials arrested Mantri Developers MD Sushil Mantri in Bengaluru. He started various attractive schemes like buy back scheme and advance scheme, and collected more than Rs 1,000 crore from customers, but did not deliver the flats as per schedule. Having said that, how many builders have collected crores of rupees from their customers and investors under UDS, pre-launch and buy back schemes since 2019? How many of them delivered their flats in time? Considering the Bangalore incident, why has the State government not taken strict action against fraudulent developers yet? What measures were taken to safeguard innocent buyers from falling prey to these fraudsters?

The Enforcement Directorate said Sushil Mantri, CMD of Bengaluru-based real estate group Mantri Developers Private Limited, was arrested. The money laundering investigation involved allegations of cheating several home buyers. He was produced before the Special Court of Prevention of Money Laundering Act (PMLA) in Bengaluru and a 10-day custody was given to the Enforcement Directorate, the statement said.

Over Rs 1,000 crore collected?

After studying an FIR by the Bengaluru police in 2020, the ED had registered a money laundering case against the Mantri Developers Group and its promoters in March this year. “Many homebuyers have complained to the police and the ED against this company. Mantri Developers has shown misleading brochures to buyers, with wrong delivery time lines and collected over Rs 1,000 crore as advances from scores of customers. Yet, flats have not been handed over to buyers even after seven to 10 years. The company introduced various attractive schemes including buyback plans, collected crores of rupees from the buyers in the form of advances, promising to build flats and houses at affordable prices. In some cases, the company did not return the amount paid by the customers even after the RERA gave clear instructions, ED revealed.

Over Rs 5,000 crore debt!

The promoters of Mantri Developers allegedly used the amount collected from the buyers for their personal needs rather than completing the projects which in turn led to stalling of construction works in several projects. During the investigation, the ED officals discovered that the Mantri Developers borrowed around Rs 5,000 crore from various financial institutions. Out of this, payments up to Rs 1,000 crore are pending. Multiple loans were taken against the same property. Mantri Developers is yet to issue a statement on the entire episode.

How many Mantris do we have?

After the implementation of RERA in the State, several developers and realtors collected crores of rupees from gullible homebuyers offering properties for a cheaper price under UDS, pre-launches and buyback schemes. Surprisingly, several major builders especially those from Bengaluru indulged in these practices and collected crores of rupees in the name of pre-launch schemes. A realty company had recently launched such project in Shamshabad and collected crores of money from buyers under cent percent payment scheme.

while some realtors are selling farm plots for prices of their choice, others are collecting crores of rupees as advance amount by promising to develop several hilly terrains in and around Hyderabad. According to unofficial calculations, several developers and realtors in Telangana have pocketed nearly Rs 1 lakh crore from buyers over last three years, in the name of UDS, pre-launches and buybacks offers. Though these fraudsters are roaming freely on the streets of Hyderabad, the State government has failed to act against them. It is time for the State government to wake up from deep slumber and address the issue to protect the homebuyers before they hit the streets demanding for justice.