Unitech director Sanjay Chandra's police custody extended

A court here on Monday extended till April 6 the police custody of real estate company Unitech`s managing directors Sanjay Chandra and Ajay Chandra.

The Chandra brothers were booked for cheating buyers as Unitech first failed to complete a real estate project in Gurugram`s Sector 70 on time and then did not refund the money to buyers.

The police told Additional Chief Metropolitan Magistrate Ashu Garg that their custody was required to ascertain the money trail and recover related documents.

The Economic Offences Wing (EOW) of Delhi Police arrested the two from their residence in Gurugram. There were 91 complaints against them in connection with the project for which valid permission from the competent authority was not taken.

The project was to be completed by 2014. The accused were booked on charges relating to criminal breach of trust, cheating and criminal conspiracy.

The police on Friday told the court that Unitech had collected Rs 363 crore from 557 customers for the Anthea Floors residential project. It also alleged that their licence was not approved by the competent authority for building a township.

The project was started in 2011 without getting environment clearance. Unitech obtained clearance in September 2013. Even though it did not have environment clearance, the accused continued booking flats without giving the real picture to investors and thus misrepresented facts.

The shares of the company closed at Rs 5.07 per piece, down 8.98% or Rs 0.50 on BSE.