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Earlier this week, the Economic Offences Wing in Hyderabad registered a case against a Jubilee Hills-based construction company for allegedly defrauding nine flat buyers of a total of INR 4.41 crore. The complainants stated they were promised homes in Tellapur under a special pre-launch offer that included assured buy-back, but neither approvals nor construction ever materialised. The company had even conducted a symbolic ground-breaking event two years ago, yet no development followed. When the project was cancelled, buyers demanded refunds.
The Cyberabad Economic Offences Wing (EOW) has lodged a case of cheating against a Jubilee Hills-based construction company accused of duping nine property buyers of INR 4.41 crore in a stalled Tellapur residential project. Advertisement
As per the complaint, a PSU employee and his acquaintance expressed interest in purchasing a flat in 2021 when a marketing executive offered them an early-bird price of INR 2,800 per sq ft with an assured buy-back option. They were informed that the land acquisition and required approvals from the Hyderabad Metropolitan Development Authority (HMDA) and Telangana Real Estate Regulatory Authority (TGRERA) would be completed within six months. Believing these claims, they entered into a memorandum of understanding and paid INR 35 lakh towards the booking.
When construction failed to begin, the company organised a symbolic ground-breaking ceremony in mid-2023 to appease the investors. However, even after two years, no tangible progress was made. In May, the developer reportedly demanded additional charges for increased square footage and GST, which some buyers paid while others refused. By late August, the managing partner informed the buyers that the Tellapur venture had been cancelled and that they could shift to other ongoing projects upon paying the difference amount. Dissatisfied with this decision, the buyers sought refunds.
The complaint includes eight additional investors who together contributed a total of INR 4.41 crore through cash, cheques, and online payments. Acting on the complaint, the EOW invoked relevant sections of the Bharatiya Nyaya Sanhita relating to cheating and criminal breach of trust, along with provisions under the Telangana Protection of Depositors in Financial Establishments Act, naming the company, its managing partner, and associates in the case.
The incident highlights the growing risk for homebuyers investing in pre-launch real estate projects without verified approvals or legal safeguards. Authorities have begun tightening scrutiny over such ventures to protect investor interests and curb fraudulent practices. For the accused developer, the charges have raised serious legal and reputational challenges, while the affected buyers are now seeking justice through formal legal proceedings rather than awaiting delayed project deliveries.
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