Ahmedabad Police Arrest Privilon Buildcon Directors in ₹54 Crore Real Estate Fraud Case

A recent case involving Privilon Buildcon Group has brought attention to the dangers of fraudulent practices in the real estate sector. The Ahmedabad Rural Police arrested the company’s directors, Hiren Kariya and Jaydeep Kotak, for allegedly defrauding 240 buyers of ₹54 crore. Investigations revealed that the company used falsified documents to claim ownership of land in Ghuma village, where they had proposed two ambitious projects.

The projects, named Celestial and Richmond Bay, were advertised as modern multi-storey developments. Celestial was planned as a 14-storey complex with 642 flats and 70 shops, while Richmond Bay was designed as a 22-storey structure with 171 flats and 34 shops. Buyers, unaware of the fraudulent claims, invested significant sums through bank transfers, cheques, and cash, believing they were purchasing legitimate properties.

However, a detailed examination of land revenue records revealed that the land in question did not belong to Privilon Buildcon. It was legally registered under Dharnidhar Developers and a group of co-owners led by Ashok Patel. The accused allegedly created a fake memorandum of understanding (MoU), notarized it, and used it to falsely claim ownership. This document served as the basis for marketing and selling the properties.

The police launched an investigation following complaints from multiple buyers. A Special Investigation Team (SIT), led by Deputy Superintendent of Police Nilam Goswami, was formed to probe the allegations. The SIT’s findings confirmed that the accused never had ownership rights over the land. The financial records and land documents provided further evidence of the fraud, exposing the elaborate scheme to deceive buyers.

The Privilon Buildcon fraud highlights the importance of conducting thorough checks before investing in real estate projects. Prospective buyers should verify land ownership through official records, cross-check project approvals with local authorities, and seek legal advice for due diligence. These steps can help protect against financial losses in fraudulent schemes.