Pujit Aggarwal, head of realty developer Orbit Corporation Ltd. was on Thursday arrested by the Azad Maidan police following a complaint from Capri Global Capital Ltd, after he failed to deliver three flats in in Sakinaka
Pujit Aggarwal, head of realty developer Orbit Corporation Ltd
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Pujit Aggarwal, the head of realty developer Orbit Corporation Ltd. was on Thursday arrested by the Azad Maidan police following a complaint from Capri Global Capital Ltd, after he failed to deliver three flats in Orbit Residency Park in Sakinaka.
The complainant Ashok Agarwal has alleged that in 2010, his company had paid for three 3-BHK flats with a 1,415 square feet area each, but Orbit failed to hand over their possession. Dippy Vankani, spokesperson, Capri Global Capital Ltd said, “We had invested R2.53 crore in three flats in Orbit Residency Park, Sakinaka that was promoted by Pujit Aggarwal and his father Ravikiran Aggarwal. They had mortgaged the project with LIC Housing Finance Limited (LICHFL) and were supposed to deposit sale proceeds of all the flats in an escrow account with HDFC bank.”
“The Aggarwals cheated us by not depositing the money in that account and so, when LICHFL took over the possession after they failed to repay the loan, they de-recognised many investors like us. Based on our complaint, the Azad Maidan police had registered a case against the Aggarwals under sections 420 (Cheating) and 34 (common intention) of the Indian Penal Code. As investigations proceeded, Sections 406 (criminal breach of trust) and 120 (B) (criminal conspiracy) of the IPC and sections 3, 4, 5 of MOFA were added to the case.”
Aggarwal’s company had made a deal with a bank, making the Sakinaka project a joint venture. The share payments to the bank were to be made on sale of the flats, but the money was transferred to a private account, after which the site faced legal action. The property was sealed, blocking investors’ money. The possession of the flats could also not be delivered, the police said.
DCP Ashok Dudhe said, “An FIR was registered against two people. One has been arrested and the court has granted him police custody till September 12.”
A spokesperson for Orbit Corp denied allegations of misappropriation. “All the money that was received was spent on the project,” he said.
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