Hyderabad’s Economic Offences Wing (EOW) Police have arrested three individuals linked to Bharathi Builders, a real estate development firm, following allegations of a fraudulent pre-launch apartment scheme in Kompally, a suburb of Medchal-Malkajgiri district.
The accused, Dupati Nagaraju and Mulpury Shivarama Krishna, founded Bharathi Builders in Madhapur, Hyderabad, in 2021. They acquired land in Kompally to construct a residential complex named “Bharathi Lake View.”
The fraud involved enticing potential buyers with a pre-launch offer priced at Rs 3,200 per square foot. The developers used eye-catching brochures and organized meetings to attract investors and collect deposits.
Nagaraju and Krishna appointed Thoddakula Narsimha Rao as the CEO, reportedly offering him substantial commissions on sales to encourage aggressive marketing.
Reports indicate that over 350 individuals, including complainant BVS Prasada Rao, invested a total of Rs 50-60 crores under this scheme. However, after successfully collecting these deposits, Bharathi Builders allegedly failed to initiate construction, and the promised apartments were never delivered. Investigators believe the firm sold the land to another party for about Rs 100 crores.
In light of these allegations, the EOW has registered a case against Bharathi Builders under IPC Sections 406 and 420, addressing criminal breach of trust and cheating, respectively. Additionally, a case has been filed under the Telangana Protection of Depositors of Financial Establishments Act (1999).
