Bengaluru: The Central Crime Branch (CCB) has registered a case of cheating and criminal breach of trust against two partners of Shri Ganesh Developers, a Bengaluru-based real estate firm, for allegedly defrauding the Telecom and Government Employees’ Welfare Housing Co-Operative Society of Rs 62 crore.
MoUs signed, funds transferred
According to Chunchaiah, the president of the co-operative society, an MoU was first signed with Shri Ganesh Developers on January 23, 2015, for the purchase and development of a parcel of land meant for society members. Over time, three separate MoUs were executed, and society members collectively transferred Rs 62 crore to the developers via RTGS transactions.
The payments were made with the expectation that the firm would acquire and develop the land, eventually allotting sites to the members. However, the project showed no progress, raising suspicion among society members.
Allegations against the developers
The partners of the firm — Y M Ramagopal and K Narayanaswamy — allegedly misappropriated the funds instead of fulfilling their contractual obligations. Another partner, Nagesh Shetty, had passed away after the initial MoU was signed, leaving Ramagopal and Narayanaswamy in control of the project.
When repeated attempts by the society to seek updates and commitments from the developers failed, members realised the deal was unlikely to be honoured. This prompted them to lodge a formal complaint with the city police.
CCB investigation initiated
Following a preliminary inquiry, the report was submitted to senior police officials. Based on the findings, the Joint Commissioner of Police (Crime), who heads the CCB, ordered a formal investigation.
The CCB subsequently filed an FIR against the two surviving partners of Shri Ganesh Developers, booking them under relevant sections of the Bharatiya Nyaya Sanhita (BNS) for cheating and criminal breach of trust.
Wider concerns in real estate
The case highlights the recurring problem of fraudulent dealings in Bengaluru’s real estate sector, where housing co-operative societies often enter into agreements with private developers to secure land for members. Experts say lack of regulatory oversight, combined with the large sums of money involved, has made housing societies particularly vulnerable to such scams.
This incident comes at a time when the real estate sector is under scrutiny for several irregularities, including disputes over land acquisition and misuse of funds.
Conclusion
The CCB probe is expected to reveal further details on how the funds were diverted and whether additional individuals or entities were involved. Meanwhile, society members, who collectively contributed Rs 62 crore over nearly a decade, await justice and recovery of their investments.