In Chennai, Father & son caught in Rs. 300 crs realty scam

From ET Realty

CHENNAI: Police have arrested the managing director of RRB Housing Company Limited and his son, one of the directors of the firm, for cheating more than 220 people to the tune of Rs 300 crore by promising to build for them apartments in Nungambakkam near Tiruvallur.

Police said Padmanabhan, 50, and his son Tamizh, 27, had floated a construction company in Ekkatuthangal and took cash deposits from people who were interested in buying apartments. When some of the investors went to see the houses, which the duo claimed to have completed, they were shocked to find that the land was barren. Villagers in the area told them that the land did not belong to Padmanabhan or Tamizh.

The investors met the superintendent of police and lodged a complaint with him.The case was referred to the central crime branch which arrested the duo and are investigating.

Police said the investors had taken personal and housing loans to deposit the money with the conmen. The complainants said they were under tremendous pressure from the banks and financial institutions to return the money . They alleged that the father and son had systematically cheated them of their hard earned money and urged the police to recover the amount which the duo owed to them.

Police are investigating where the money is stored and are on the lookout for the duo’s accomplices who were party to the fraud and are suspected to have a large part of the money.

Veteran actor S S Rajendran’s relatives had earlier lodged a complaint against the men for cheating them by failing to pay the money agreed upon to purchase the land.The case is pending before the police.

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