A Delhi court on Wednesday remanded a woman director of a real estate firm, who had allegedly duped more than 1,000 investors on the pretext of providing them affordable flats, to five-day police custody.
Allowing the plea of the Economic Offences Wing (EoW) cell of the Delhi police to interrogate Madhu Singh, the director of AJS Builders Ltd, additional chief metropolitan magistrate (ACMM) Amit Bansal remanded her to police custody for five days till June 13.
Madhu was arrested on Tuesday by the EOW sleuths from her office in Gole Market following a raid.
Seeking seven days’ custodial interrogation of Madhu, Public Pprosecutor Ravinder Bhati, said her company had allegedly collected more than `700 crores from 1,500 investors in three projects on the pretext to provide them flats in a time-bound manner.
The prosecution said they have to recover documents and have to search Madhu’s office. They have to ascertain the details of movable and immovable assets which Madhu had purchased with the money acquired through cheating and diversion of funds.
As per prosecution, Prabhjot Singh, the CEO of the company, had died in 2007 in a road accident in which Madhu had also sustained injuries.
Madhu and her sister-in-law Geeta Singh, who is also one of the directors in the company, were declared proclaimed offenders by a court here in 2010 for evading the judicial proceedings. AJS Builders was carrying out three different projects in Indirapuram, Gurgaon and Sonepat where it had promised the investors of developing residential colonies.
Pradeep Mahajan, counsel for complainants, said Madhu took the money from the investors under the housing scheme but even after three years not even a single flat has been alloted and the company has no land to develop residential colony as disclosed in its brochure.