A prominent city builder has been arrested on the charge of duping an investor of nearly Rs 2.5 crore. The police suspect accused Pujit Aggarwal, MD and CEO of Orbit Corporation, has cheated many others.
Acting on a complaint by financial company Capri Global Capital Ltd in May, the Azad Maidan police on Wednesday night arrested Aggarwal. The realtor was produced in a court on Thursday and was remanded in custody till September 12.
According to a media release by Capri, the firm bought three apartments at Orbit Residency Park in Sakinaka for Rs 2.53 crore in 2008. Since the project had been financed by the LIC Housing Finance Ltd (LICHFL), Orbit was required to deposit the sale proceeds in an escrow account.
Despite its agreement with LIC, Capri said, Orbit chose to keep the money with itself. The investor said they were left high and dry after LIC took possession of the property over non-payment of its loan by Orbit.
“LIC de-recognised many investors like us,” said Capri, explaining that the action meant LIC did not consider them flat buyers. “The Aggarwals cheated us.” The complaint also names Aggarwal’s father and Orbit chairman Ravikiran as another accused.
The police have booked Aggarwal for cheating under Section 420 of the Indian Penal Code and for violation of the Maharashtra Ownership Flat Act, 1963. “Investigations are on,” said Manoj Sharma, deputy commissioner of police (zone 1).
According to police sources, Orbit Corporation is suspected to have cheated more investors and lenders across the city. It is known for its upscale projects in south and central Mumbai.
The realty firm’s trouble started in August 2013 after it failed to repay Rs 96 crore out of a total Rs 250 crore availed from LICHFL and the interest on the amount.
In 2015, LIC decided to take over 26,000 sq ft at Orbit Grand and 45,600 sq ft at Orbit Midtown in Lower Parel, and 1.70 lakh sq ft at Orbit Residency Park, Sakinaka.