Firm accused of duping people.

Y Maheswara Reddy; Wednesday, April 13, 2011,

BANGALORE : Prospective buyers of housing sites have alleged that a land developer has taken them for a ride.

According to G Lakshmikantha, one of the victims, many people have paid lakhs of rupees to Aishwarya Projects company which promised to form many layouts around the city. "They have collected Rs 3 lakh each from around 500 people who want to buy sites at the layouts that were never formed by the Aishwarya Projects," he said.

People who have lost money say, it all started when Aishwarya Projects had announced formation of layouts around Bangalore City in 2006. Many people who were keen to cash on the real estate boom, invested their life savings to buy sites at the layouts proposed by the company. As Aishwarya Projects continued announcing projects from 2006 to 2008, people also continued to invest money to buy sites, he said.

"The problem started when Aishwarya Projects failed to form layouts even after three years and avoided the investors on one or the other pretext," said one of the investors on the condition of anonymity.

With the failure of Aishwarya Projects in honouring its commitment, many of the investors lodged complaints with Mahalkashmipuram police.

Later, City Police Commissioner Shankar Bidari directed the City Crime Branch police to take up the case in September 2010. "However, the CCB police are yet to take action against Aishwarya Projects management," said Lakshmikantha.

Meanwhile, the victims, through RTI Act, have requested the CCB to provide information on the number of complaints received against Aishwarya Projects but thy were in vain. "I received a reply from the Police Commissioner Office (No69/RTI/PRO/2010) stating that they could not provide information on the number of cases registered against Aishwarya Projects," said Lakshmikantha.

"I have invested Rs 3.50 lakh to buy a site at New County Layout to be formed by Aishwarya Projects near Bidadi," said K Padmanabhan of Mahalakshmipuram.

Many people invested money without informing their relatives. "I invested Rs 7.12 lakh to buy three sites," said one investor from Manjunathnagar under the condition of anonymity.

Company to return money:

Meanwhile, Aishwarya Projects had agreed to return the money to the investors.

They have entered into an agreement with the investors in the presence of Commissioner of Police Shankar Bidari and Joint Commissioner of Police (Crime) Alok Kumar promising to clear the dues before April. "They paid us only Rs 50,00 in two instalments. There was no one when I visited Aishwarya Projects office on Dr Modi Road,'' said Padmanabhan.

However, Joint Commissioner of Police (Crime) Alok Kumar has assured to help the people who have invested money in Aishwarya Projects. "I will take action against Aishwarya Projects management as per law," he said.

But the investors are not in a position to accept police' version.

"I do not know what is preventing the police from taking timely and quick action against Aishwarya Projects, particularly under the Section 420 of IPC as adequately provided under the legislation," Lakshmikantha said.

However, the promoters of Aishwarya Projects were not available for comment despite repeated efforts.