Coimbatore Real Estate Developer Arrested for Cheating Over 35 Investors of Rs 70 Lakh
In Coimbatore, a real estate developer named M. Thangaraj was recently arrested for allegedly cheating more than 35 investors out of a total of Rs 70 lakh. The 61-year-old developer, operating through his company, Gokulam Gardens, had promised land ownership to investors who made monthly installment payments. This case has sparked concerns about deceptive investment schemes in real estate, leading to police involvement to investigate and address the claims of affected investors.
Thangaraj had been in the real estate business for over two decades, with Gokulam Gardens operating from Tatabad and Irugur. His company extended its activities to various parts of Coimbatore, Tirupur, and Erode, where he promoted an installment scheme aimed at individuals interested in purchasing land. This scheme, advertised in newspapers and on social media, allowed people to buy land in smaller, manageable monthly payments. This approach appealed to those who wanted to secure land ownership affordably without needing a large upfront sum.
Initially, Thangaraj’s scheme seemed legitimate. He even registered some properties in the names of a few early investors, helping to build credibility. However, as time passed, many others who had signed up for the installment plans found themselves without land titles or property registration. One such victim, M. Prasannakumari from Cheran Maa Nagar in Coimbatore, reported paying Rs 3.71 lakh to Gokulam Gardens with the hope of owning land in Neelipalayan near Punjai Puliyampatti, Erode district, but received no property registration in return.
As complaints started to accumulate, a group of affected investors approached the police for help. After hearing from over 35 victims who reported losses in connection to Gokulam Gardens, the Rathinapuri police began investigating the case. The initial investigation revealed a number of irregularities in the way Thangaraj's firm conducted business and managed investors' funds. A Case was officially registered against Thangaraj under sections 406 (criminal breach of trust) and 420 (cheating and dishonesty) of the Indian Penal Code.
The following day, police arrested Thangaraj and also seized a luxury car that he owned, adding to the evidence collected in the case. However, Nagaraj, a manager who also worked for Gokulam Gardens and is suspected of involvement in the scheme, remains at large and has not yet been located by authorities.
The financial loss and uncertainty faced by affected investors show the risks of investing in real estate without fully checking a company’s legitimacy. For many, buying land is a major financial goal, and losing money to unreliable schemes can cause financial hardship and stress. Cases like this highlight the need for caution when considering real estate investment plans.
Local officials and police advise potential investors to carefully review all documents before committing to real estate schemes. They recommend seeking legal advice to confirm the validity of the property, the company, and its offers.