The Director of a Prominent Real Estate Developer Company Charged For Fraud

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With the implementation of RERA lots of relief has come to the people and more pressure started mounting on the builders. But despite that, there are some old cases that keep popping up wherein the builders and real estate developers have been labeled for fleecing the clients. Here in this case too, one of the prominent builders from the city has been charged with the fraud case, here is the report.

According to the sources, the Director of Prabhu Constructions has been charged with fraud case for not handing over plots to clients in time despite payment. The angry clients filed a complaint against the director. While speaking to the media, the director, he said that the delay had been caused due to the pending court case which took 3 years and hence he could not deliver the plots in time to the clients. 

One client who was supposed to build his hotel on a plot claims that the director assured him of a reception, a fountain, lights in the ATM, and all this would be ready in 2017 along with the Pollution certificate. The client says its 2019 now but he has still not got possession till date. He was even assured of getting waterproofing done of his 35 parking plots, which has still not been done. The lifts are not in working condition and the client has to go walking up to the 5th and 6th floor at least a couple of times a day.

The client also claimed that the lifts were full of water and it was not possible to use them. He also said that the director has given excuses about the court case and they have all got together and requested the Police Inspector to file an FIR against him.


The client requested the media as well as the CM to intervene in the matter, as the director was planning to flee. The client says that the director was paid Rs. 20 crores. What has been done with the 20 crores? The one crore that is pending is supposed to be paid after possession. The director is requesting for the one crore payment now.

One senior lady said that she has no electricity or water in her flat. It’s been 6 months that she’s been staying there and the lights through on at times are quickly switched off later. A senior gentleman also says that they have not yet received the possession letter. Yesterday the director contacted the senior citizens saying that they still have to pay around lakh and a half.

Another senior citizen said he doesn’t allow them to even keep their footwear outside their own flats. She said her daughter arrives home late at night and how was it possible for her to come up to the flat in the dark.

The client Imran, said he brought his own architect yesterday to do a survey. He found 200 sq mts less. The director told him that he has combined two plots to make it one. Instead, the client said he has encroached on the balconies and has left no access space. He has not received any refund for the space that he was deprived of. The client said till date, no wiring, plumbing, installation of switches, sanitation or any other important works have been done. He also informed the media that two years back, he was handed over the key and told to do what changes he likes within the premises. Now the director says the hotel is illegal. The client says he has done all the necessary paperwork and has all the recordings on his phone pertaining to the same.

Another client said he had the booking in 2012. This September it will be 7 years since he booked his flat. At the time of booking, he was shown one plan, which was agreed upon mutually in the agreement. Later he was told by the director, that a different flat would be ready for him and due to the increase in area, he has to pay an extra Rs. 135000/-. The client paid and after the flat was handed over he noticed the area was extremely less. He said he will submit the agreement copy with the plans to the media for their perusal. He also said that henceforth Goan builders should be more responsible as it’s the clients hard-earned money along with payments made towards registration fees and taxes. The client says that now the builder is threatening to terminate the agreement. The client said they have done everything legally and it was not possible to terminate an agreement at this juncture and they are going to file an FIR against him. He even said that this is a warning to other builders not to cheat the public.

The director, on the other hand, claims that though the project was completed 4 years ago, they had a court case against them, by the collectorate. It took them 3 years to sort out the issues and he says they have won the case. After receiving occupancy, he sent the notice for possession to the clients, along with the request for the pending payments. He now says that the clients are claiming there are many pending works. The lifts have already been installed but can’t be operated without electricity. He also said the clients were allowed to use the electricity of the building without being charged for a period of 9 months, for those who wanted to get their work done. He said electricity bills of around Rs. 30000/- were paid by them.  He claimed one of the clients Imran, who was a POA for another client, has done an illegal construction at the entrance. The director switched off the temporary connection, but despite that, the client goes and switches it on from the inside. The director says he has completed thousands such projects all over Goa, and such issues keep cropping up. He requested the clients to pay their pending dues and they would be handed possession of the completed project.

He says the project is already completed and possession is only pending due to court litigation. He says that we are not against anybody and everyone knows Prabhu constructions all over Goa. He says if the clients call him a cheater, they should prove it first. He said that the PI gave him a period of two days, else he would face action. Prabhu director says he’s ready to face any action whatsoever, and that he is not running away anywhere.

He told the media he was one against twenty others and they could report whatever they feel like reporting.


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