Rs 5000 cr ‘scam’: Hyderabad realty group in Telangana HC dock

It came after a city-based NGO, The Right Society, filed a Public Interest Litigation (PIL) against the companies.

Hyderabad: The Telangana High Court has sought explanations from companies associated with Hyderabad-based Spectra Group over allegations of cheating more than 10,000 property buyers and investors in a real estate scam which is estimated at over Rs 5,000 crore.

It came after a city-based NGO, The Right Society, filed a Public Interest Litigation (PIL) against the companies.

Directing the companies to respond to the PIL, a division bench of Acting Chief Justice P Sam Koshy and Justice Suddala Chalapathi Rao posted the matter for further hearing.

Senior counsel B Rachana Reddy, representing the petitioner, alleged that several companies under the Spectra Group had raised huge sums from the public since 2015. She said that the amount was collected by offering residential plots and housing projects.

15 real estate projects spread across 2,000 acres

According to the PIL, Spectra India Eco Projects Pvt Ltd, Spectra India Housing Pvt Ltd, Spectra India Mega Projects Pvt Ltd and their associated firms allegedly collected more than Rs 5,000 crore from over 10,000 customers through approximately 10,000 marketing agents.

The petition listed around 15 projects covering more than 2,000 acres in locations within 70-80 km of Hyderabad.

The projects named in the petition include Spectra Galaxy Divine at Kolanpak, Spectra Yashovan, Galaxy Gold and Spectra Diamond in the Yadagirigutta-Yadadri region, and Highway City at Narketpally.

Other projects mentioned were Viceroy Residency, Fortune, Fortune Residency, Peripheral City, Spectra City and Viceroy phases at Shadnagar, Gateway City at Balanagar and Spectra Tech Towers at Injapur-Uppal.

Buyers allegedly left without completed projects

As per NGO, even after customers paid money, several developments were abandoned. The petition claimed that some buyers neither received basic infrastructure nor got registered sale deeds.

It further alleged that only six projects had secured RERA registration. The developers failed to maintain the required escrow accounts, it added.

The petition also claimed that cheques issued by the companies were dishonoured. It accused the developers of making misleading statements about approvals from the Hyderabad Metropolitan Development Authority (HMDA) and the Directorate of Town and Country Planning (DTCP) to attract buyers.

PIL seeks investigation into companies and directors

The petitioner alleged that despite representations submitted to multiple agencies, including TG RERA, police, the Enforcement Directorate, Economic Offences Wing, Serious Fraud Investigation Office (SFIO) and SEBI, there was no coordinated action.

The NGO has asked the High Court to order an investigation through a court-monitored Special Investigation Team (SIT).

It has also sought criminal proceedings under the Telangana Protection of Depositors of Financial Establishments Act and the Bharatiya Nyaya Sanhita (BNS).

The High Court has directed the concerned companies to submit their counters responding to the allegations.