Artha Tatwa Group scam: CBI on lookout for land sharks
Sethy, who had diverted bulk of the investors' money into real estate to earn quick bucks, failed to dispose those land after learning about the actual price of the property
Sep 19, 2014
Source : The Times of India
Pradeep Sethy, CMD, Artha Tatwa Group


BHUBANESWAR: CBI is hot on the trail of some land sharks, owing allegiance to influential politicians in Khurda and Ganjam districts, for facilitating Artha Tatwa (AT) Group chief Pradeep Sethy to buy land at inflated prices.

Sethy, who had diverted bulk of the investors' money into real estate to earn quick bucks, failed to dispose those land after learning about the actual price of the property.

"Sethy wanted to sell the land at higher prices but failed to do so because the property was worth much less than what he had paid. During interrogation, he accused his senior employees of conniving with land brokers and politicians to cheat him," said a CBI officer.

"Some of those employees and brokers are on the run. The senior employees took huge commission from brokers. Though Sethy uttered names of some politicians in the land fraud, we are verifying his charges," the officer said.

While Sethi earlier told the media that he owned nearly 175 acre at different places in Odisha, the commissionerate of police (previous investigating agency) had found that he owned nearly 241 acre in 10 tehsils of the state.

Sources said Sethy bought land for nearly Rs 250 crore, incurring heavy loss.

The property should have been worth Rs 120 crore. Sethy owned nearly 140 acre in and around Bhubaneswar.

Real estate business was his only hope to mobilize money as he was paying hefty commission to agents, who were collecting deposits from people by promising to double their investments in quick time.

"While Sethy was spending nearly 50% of the collections on commission and office management, the rest he diverted into other trades, mostly real estate to mint money. His business collapsed and he failed to repay investments after his land deals backfired," the officer said.

Sethi's plan of starting housing projects on the outskirts of the city did not work out as his company went bust.

Police sealed 139 flats, including 12 flats in Bhubaneswar.

Two duplexes and a few commercial establishments, purchased by Sethy in Bhubaneswar and Kolkata, too were sealed.

Latest Realty News

ED attaches Saradha properties in Malda
Sep 19, 2014
The Enforcement Directorate today attached 11 plots across Englishbazar that were acquired by the Saradha Group and put up notices saying the properties could not be claimed or dealt with without permission from the department
Funds boost to build BPL scheme houses
Sep 19, 2014
Union minister of state for rural development Upendra Kushwaha today announced the hike of at least Rs 45,000 as financial assistance to the beneficiaries for constructing houses under Indira Awas Yojana (IAY)
KV daughter loses Ghangapatna land
Sep 19, 2014
The BJP state unit is facing embarrassment after the state government has taken back the land, owned by its president K.V. Singh Deo’s daughter, at Ghangapatna, claiming that the land belonged to the government may raise $30 million from Tybourne Capital, Yuri Milner
Sep 19, 2014
Property portal is in talks to raise as much as $30 million (about Rs 180 crore) from existing and new investors including Russian venture capitalist Yuri Milner in his personal capacity and Tybourne Capital
Tata Capital Housing Fin eyes Rs 4,000-cr affordable loan book
Sep 19, 2014
Tata Capital Housing Finance is planning to grow its affordable housing loan portfolio to Rs 4,000 crore over the next three years from its present base of Rs 1,800 crore
DDA’s formula for cheaper, quick houses founded on ‘Prefab’
Sep 18, 2014
The promise of cheaper and quick delivery of housing units by the Delhi Development Authority (DDA) under its current housing scheme could be attributed in part to prefabricated technology, commonly referred to as ‘Prefab’.
DDA to pay Rs 50K for wrongly cancelling flat allotment
Sep 18, 2014
The Delhi Development Authority has been asked to pay Rs 50,000 compensation to a woman over a flat, whose allotment was cancelled, while noting that she was not informed in a proper manner
FDI in construction likely to be eased before PM Narendra Modi's US visit
Sep 18, 2014
Ahead of Prime Minister Narendra Modi’s visit to the United States next week, the government is expected to ease norms for foreign direct investment in the construction sector
One lakh houses for poor by 2016 in Punjab: Sukhbir
Sep 18, 2014
Punjab deputy chief minister Sukhbir Singh Badal announced construction of one lakh houses for economically weaker sections (EWS) at affordable prices. These houses would be ready by October, 2016
Prohibited zones: Contempt notices to DCs for illegal construction
Sep 18, 2014
The Punjab and Haryana high court issued contempt notices to deputy commissioners (DCs) of Gurgaon and Faridabad and commissioners of the two municipal corporations for their failure to stop illegal construction in the prohibited zones around air force stations in the two cities

Latest Realty News Of State

Realty Talk's