LUCKNOW: The Economic Offences Wing (EOW) of Uttar Pradesh Police has arrested a director of an alleged multi-crore real estate fraud involving Karmabhoomi Real Estate Company Limited, accused of duping hundreds of investors across several districts. Five other directors and associates remain absconding, officials said.
The accused, Mahipal Singh (50), a resident of Chhatikara in Mathura, was apprehended on June 6 during a special statewide crackdown on economic offenders launched under directions of senior EOW authorities. Singh, son of late Dharamveer Singh, had been on the run in connection with Investigation No. 44/2023 stemming from Case Crime No. 03/2023 registered at EOW Kanpur Sector.
He has been booked under multiple sections of the Indian Penal Code, including criminal breach of trust (409), forgery (467, 468), use of forged documents (471) and criminal conspiracy (120-B).
Rs 100 crore investment fraud alleged
According to investigators, the company, registered with the Registrar of Companies (RoC) in Kanpur, expanded operations across districts including Mathura, Kanpur, Bijnor, Moradabad, Shahjahanpur and Lakhimpur Kheri.
Between 2011 and 2015, it allegedly ran aggressive investment schemes promising unusually high returns along with assured allotment of residential plots and flats.
EOW officials said these schemes lured a large number of investors, who collectively deposited around ₹100 crore. Victims were reportedly promised quick doubling of their investments and affordable real estate options.
However, the company allegedly failed to deliver on both counts—neither were properties allotted nor were matured funds returned to investors.
Directors accused of vanishing
Investigators said that after collecting substantial funds from the public, the company’s directors and representatives abruptly shut their offices and disappeared. This left investors with no recourse to recover their money.The probe indicates that the accused acted in a well-planned conspiracy, using forged documents, misleading marketing, and false assurances to cheat investors. Instead of utilising funds for real estate projects, the money was allegedly siphoned off and misappropriated for personal gains.
Evidence of organised fraud
Following complaints from multiple districts, the state government ordered an EOW inquiry. Investigators found sufficient evidence to register a criminal case against six directors, including Mahipal Singh.
Officials said Singh played a key role as a director in the company’s operations and allegedly worked in coordination with co-accused to defraud investors on a large scale.
Arrest during special drive
Acting on intelligence inputs, the EOW tracked Singh to Mathura and arrested him after months of evasion. He is being produced before a competent court, and further legal proceedings are underway.
Hunt on for remaining accused
The EOW confirmed that efforts are underway to nab the remaining five absconding accused. Financial records, banking transactions, and property details are being scrutinised to trace the diversion of funds and identify assets acquired through the alleged scam.
Officials indicated that more arrests are likely as the probe progresses. The case is among the largest real estate-linked frauds investigated by EOW in Uttar Pradesh in recent years, involving widespread cheating and losses estimated at around ₹100 crore.
