Builder held for duping 80 homebuyers

PUNE: A Sahakarnagar-based developer and three of his associates have been held for allegedly cheating some 80 home buyers of Rs 80 lakh with a promise to provide affordable row houses at Khed-Shivapur, about 25 km from the city.
The Vishrambaug police on Monday arrested Ajay Govind Bhute (45), a resident of Sahakarnagar, Saiprabha Menon (46) of Wadgaonsheri, who promoted the scheme, Sachin Jagtap (36) of Yerawada and Bhute's manager Madhur Bhosale (33), a resident of Pune Camp.The suspects were produced in the court on Tuesday and remanded in police custody for three days.
S G Patil, sub-inspector of the Vishrambaug police station, said that about 400 people had invested over Rs 5 crore in the scheme. "About 80 people have approached the police so far complaining that the refund cheques issued by the builder bounced," Patil said.
Bhute had launched the scheme in Vaddara village near Khed-Shivapur in March 2012 with Jagtap's firm was promoting the project. Bhute's offer of a well-furnished row house for just Rs 7 lakh tempted many buyers who visited the developer's office in Shivajinagar and also the advertising firm's office in Sadashiv Peth. "Many of them paid up to Rs 70,000 as the first installment," Patil said.
Bhute started the work as promised, but several customers demanded their money back because they were unhappy with the quality of construction. Bhute returned booking amounts to about 100 people, but some of the cheques he issued were dishonoured.