Cyberabad: Goldfish Abode MD held for Rs 6.81 crore fraud at Zresta Villas

Hyderabad: The managing director of Goldfish Abode Pvt Ltd was arrested for misappropriating Rs 6.81 crores collected during villa registrations at Zresta gated community.

The Economic Offences Wing (EOW) of Cyberabad arrested Chandra Shekar Vege, a resident of Osman Nagar, Tellapur in Ranga Reddy district. Chandra Shekar is said to have executed the villa registrations through his directors between 2020-2023 by violating the AGP cum Development Agreement.

Case details

EOW Cyberabad deputy commissioner K Prasad alleged that Chandra Shekar misappropriated Rs 6.81 crores collected from villa owners towards corpus fund and maintenance charges.

The case came to light when S Vikranth Reddy, secretary of Zresta Villas Owners MMACS Ltd filed a complaint against Chandra Shekhar.

During the investigation, it was revealed that the accused was involved in seven criminal cases within the Narsingi police station limits and one case at Gachibowli PS. The Narsingi Police had invoked the PD Act against him earlier, the DCP said.

Modus operandi

Prasad said that the accused executed property registrations of villas in the Zresta gated community through his additional directors, despite having personally signed the sale agreements.

Chandra Shekhar collected Rs 3,96,38,781 (almost Rs 4 crores) as corpus fund and Rs 2,85,39,945 (approx Rs 2.85 crores) as maintenance charges from villa owners between 2021-2023. He failed to transfer the collected funds in total (Rs 6,81,78,726) to Zresta Villas Owners MMACS Ltd.

The accused misused his position and misappropriated the funds intended for the villa owners’ association, thereby committing financial fraud, he added.

Chandra Shekar Vege has been arrested, produced before the court and sent to judicial remand.

Public advisory

- Always ensure that property registrations are executed directly by the authorised signatory mentioned in the sale agreement, especially when dealing with large transactions.

- Buyers should regularly review the financial dealings of builders and housing associations, especially concerning maintenance funds and corpus funds, to ensure they are being utilised properly.

- If you suspect any fraudulent activity or misappropriation of funds, immediately seek legal advice or file a complaint with the appropriate authorities.