Tag Archives: Kochin property news

Apple Realtors & kin applied for bail

Posted on by Track2Realty

Kochin real estate news, Kochin property news, Delhi NCR real estate, Bangalore Real Estate, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news indiaThe promoters of the real estate company Apple A Day, linked to a housing scam have filed for bail, and the mother of one of them has also filed an anticipatory bail application in a sessions court in Kochi.

The developments come on the heels of reports that the real estate company failed to deliver apartments that had been promised to hundreds of clients.

Earlier, the promoters of the company, Saju Kadavilan and Rajeev Cheruvara had moved the Principal Sessions Court in Kochi for anticipatory bail, but the applications were turned down. They then filed an appeal before the High Court. The bail application is to be heard by the court next week.

Saju Kadavilan’s mother filed for anticipatory bail, pointing out that police were visiting her house and that she perceived she too could be made a party to the case. Her bail plea will also be considered by the court next week.

The revelation that the company is in financial doldrums has come as a big blow to hundreds of home aspirants in Kerala, and many others who are living and working abroad, who had invested in apartments promoted by the company. Police have reportedly filed more than 70 cases against the promoters, acting on complaints by investors who say they have been cheated, and that the company had not delivered any finished apartments in the past few years.

The denial of bail to the promoters by the sessions court is only small consolation for the investors, who fear that it may be a long wait to either get any refund of money from the realty company, or see the apartment of their dreams completed by the company.

The court had observed that the bail application could be considered if a security worth Rs1 billion (Dh81 million) was provided. The accused claimed they needed only Rs310 million to complete the projects on hold, and that they had received confirmation from two banks that they would extend the necessary credit to complete the projects. The court, however, rejected their bail plea.

Local media reported that several middle and lower-income families were feared to have lost money because they were lured by the company’s offer of homes that came at an economy price of Rs1 million per unit.

Court rejects 
bail for Apple realtors

Posted on by Track2Realty

Kochin real estate news, Kochin property news, Delhi NCR real estate, Bangalore Real Estate, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news indiaThe Ernakulam Principal Sessions Court on Thursday rejected the anticipatory bail plea of promoters of a real estate company who have duped hundreds of people, including several non-resident Indians, of more than Rs.1 billion.

K.A Saju, 37, and C Rajeev Kumar, 33, Managing Director and Director respectively of Cochin-based Apple A Day Properties Ltd, absconded and moved the application after the police registered a case against them.

Police said 250 people had lodged complaints against the company so far. Most of them had paid the firm Rs.500,000 to Rs.3.5 million as advance to purchase apartments and villas in 11 projects. However, the company failed to hand over the houses despite the expiry of many deadlines.

According to preliminary investigation by the police, the amount involved in the cheating is a whopping Rs.1.5 billion. Principal Sessions Judge B. Kemal Pasha had on Wednesday given the accused an opportunity to deposit Rs.1 billion as security for considering their bail plea.

On Thursday, when the application was taken up for consideration again, they offered to complete the projects by spending Rs.350 million. They claimed that the Life Insurance Corporation of India (LIC) and the Federal Bank had agreed to provide the amount as loan.

However, the judge rejected the offer saying that the company had collected money from the people with the aim of cheating the customers. The court pointed out that the firm had not delivered even a single unit in the last five years. ‘

The promoters of the company had withdrawn money from all their accounts four months ago. The police said the promoters of the company had lavished money on luxuries. They found as many as 30 luxury cars in the name of the promoters.

The police are in the process of attaching the properties of the company in various parts of the city and outside. They have launched a hunt for the promoters, who are believed to be outside Kerala. A senior police official expressed the hope that they will be able to arrest the two soon.

The company had lured the customers by offering affordable house in the heart of the city. It had mostly targeted the upper middle class, NRIs and the software professionals.

The affected investors have formed an association called ‘Big Apple Buyers Association’ to pursue the case. The Association is also planning to move the court for relief.

This is one of the biggest real estate frauds Kerala has witnessed in the recent past. The Confederation of the Real Estate Developers Association of India (CREDAI) said they had no knowledge of the happenings since Apple A Day Properties was not a member of the organisation.

A spokesman of the Cochin unit of the CREDAI though confirmed the company had sought membership but it was not given as they could not fulfill the membership requirements. He said that the case was the result of failure of investors to check the credentials of the builders, who have not completed any project in the last five years.