Nation Crime 10 Aug 2019 Mantri, PNB Housing, ...

Mantri, PNB Housing, Axis Bank cheated us: Home buyers

Published Aug 10, 2019, 2:49 am IST
Updated Aug 10, 2019, 2:49 am IST
Buyers have filed eight FIRs with the Cubbon Park police station against the builder and PNBHFL.
A copy of the one of the FIRs.
 A copy of the one of the FIRs.

BENGALURU: Mantri Developers, Punjab National Bank Housing Finance Ltd (PNBHFL) and Axis Bank have defrauded hundreds of home buyers to the tune of hundreds of crores, alleged home buyers and representatives of an NGO here on Friday.

Buyers have filed eight FIRs with the Cubbon Park police station against the builder and PNBHFL. They have also approached the Real Estate Regulatory Authority (RERA), accusing Axis Bank of colluding with the builder. Each buyer has invested anywhere between Rs 25 lakh and Rs 1.5 crore.


Some of the affected home buyers and representatives of NGO Rowland Future India alleged that over 1,000 people have lost their money, but the police and bureaucracy are apathetic. “The union government is only communicating about complaints and counter-complaints to us and Mantri. RERA has given its verdict in 30 of the 70 cases, but the orders are still to be executed. We request the police to restrain Mantri’s top officials, including founder director Sushil Mantri, from leaving the country,” said Mr Radhakrishna Chawla, a buyer.


Mr Jayapal Reddy, who worked for Mantri for nearly 13 years, said, “Though I was an employee,  I too have been duped by the company."

Another affected buyer Raghunatha R. alleged that Mantri in collaboration with PNBHFL launched several schemes. “Construction-linked payment plan, pre-EMI plan and buyback plan were used to dupe us. For the Mantri Serenity scheme, PNBHFL officials convinced us that they had verified the legalities of the project.

We thought that PNBHFL was a subsidiary of the national bank PNB, but only now we know that they have got nothing to do with each other. Bank officials are now showing different clauses in the documents,” said Mr Radhakrishnan P., another victim.


“In the construction-linked payment plan, buyers pay 20 percent of the value of the house at the time of the agreement and get a loan for the remaining 80 percent. The bank releases payments to the developer proportionate to the construction, while buyers have to pay a proportional EMI to the bank. Mantri had promised to complete the project by August 2016.  Though the financial institutions have released almost all the money, the apartments are yet to be completed,” said activist Rowland Soans.

“Mantri had promised the buyers that pre-EMI payments to banks will be reimbursed monthly till August 2016. But it has defaulted and there is a balance of 15 EMIs for some buyers. Over 300 buyers are affected,” he said.


"Under the double buy back scheme, Mantri had promised to reimburse the pre-EMI payments till the date of closure. If a buyer is not interested in the apartment, Mantri was to give them twice the invested amount. Over 200 buyers are hit,” said Mr Raghunatha.

The buyers blame Sushil Mantri, Snehal Sushil Mantri and Pratik Sushil Mantri and PNBHFL and Axis Bank officials for the alleged fraud. Many other buyers alleged that they too want to file complaints, but the Cubbon Park police have colluded with Mantri and are refusing to register FIRs. The police are asking them to act as witnesses in the registered complaints, they said.


Meanwhile, sources said that Mantri Developers has moved the Karnataka Appellate Tribunal against RERA verdicts.

Location: India, Karnataka, Bengaluru