Frauds in Gurugram - Advance India Projects Ltd

Review On Advance India Projects, Gurgaon

This is to bring to the attention of the public, a series of grave financial irregularities, fraudulent activities, and misappropriation of funds perpetrated by Advance India Projects Ltd (AIPL), located at 5th Floor, AIPL Business Club, Sector 62, Gurugram Haryana. The company, along with its directors and associated entities, has engaged in practices that have caused significant financial harm to me and several other property buyers.

1. Background:

I entered into a commercial agreement with AIPL for the purchase of a shop in their AIPL Joy Street project located in Gurugram, Haryana. The said property was purchased under the promise of assured monthly returns until physical possession was handed over, among other commitments. However, AIPL has systematically breached these agreements, causing severe financial losses.

2. Misappropriation of Assured Returns:

AIPL promised to pay assured monthly returns to cover the expenses incurred until physical possession was provided. Despite receiving payments and loans for the same, AIPL failed to honor this commitment, leading to significant financial strain. This indicates a deliberate intention to defraud, as they have retained these funds without fulfilling their contractual obligations.

3. Alleged Misuse of Leasing Rights:

AIPL has allegedly misused the leasing rights of properties owned by individual investors. Instead of providing market-rate rentals to property owners, AIPL has been accused of entering into revenue-sharing agreements that favor preferred brands or offering below-market monthly rentals. These rentals have not been passed on to the property owners, raising suspicion of financial misappropriation for the benefit of AIPL and its associated entities.

4. Incorrect Adjustment of Assured Returns and GST Input Credit:

AIPL has engaged in incorrect adjustments of assured returns, further compounding the financial losses of investors. Moreover, there are strong indications that AIPL has misappropriated the GST input credit that should rightfully benefit the investors. This fraudulent accounting has led to the mismanagement and possible siphoning of funds.

5. Malicious Intent to Cancel and Resell Shops:

There is evidence to suggest that AIPL, taking advantage of the booming real estate market, harbored malicious intentions to cancel shops under the pretext of alleged breaches by the buyers. These cancellations, followed by reselling the properties at higher prices, indicate a premeditated plan to deceive investors and unlawfully enrich themselves.

6. Forced Signing of One-Sided Buyer’s Agreement:

After years of avoiding the delivery of physical possession, AIPL forced me and several other investors to sign a one-sided buyer’s agreement under duress. This agreement is skewed heavily in favor of AIPL, stripping investors of their legal rights and protection. Such actions are not only unethical but also point to a broader strategy of financial exploitation.

7. Unlawful Revisions in Common Area Maintenance (CAM) Charges:

AIPL has been arbitrarily revising and imposing exorbitant rates for the common area maintenance (CAM) of its real estate projects, such as AIPL Joy Street, AIPL Joy Central, and AIPL Joy Square, without sharing detailed justifications or obtaining the consent of property owners. Furthermore, AIPL imposes a punitive 18% interest on consumers/property owners for non-payment of these inflated CAM charges.

To further their financial interests, AIPL has formed associations such as Joy Street Management Services and similar entities for other projects. These associations are controlled by members and office bearers who are directly associated with AIPL, often through shell companies, thus allowing AIPL to reroute the funds collected through CAM to its own entities. Property owners are being duped, as AIPL has consistently refused to provide the names and contact details of these office bearers and has also rejected property owners' requests for new membership.

The details of the office bearers and their connections with AIPL are attached herewith. Despite repeated requests, AIPL has remained unresponsive to the concerns of property owners on this subject, further reinforcing the suspicion of financial misappropriation.

8. Unjustified Sale Price Variations:

AIPL has engaged in grave fraud in selling its real estate products by offering different sale prices for similar units within the same week or month, without declaring any official price revisions. This practice has not only harmed property owners but has also significantly impacted the revenue department, GST taxation, income tax, and capital gains. These unjustified variations in sale prices raise serious concerns about misappropriation and possible evasion of taxes. I request the Economic Offenses Wing to conduct a detailed probe into these discrepancies, as such acts are detrimental to both the property owners and the revenue interests of the Government of India.

9. Fraudulent Collection of Property Tax:

AIPL is engaging in fraudulent activities regarding the collection of property tax from property owners. Despite not transferring title ownership through a conveyance deed, AIPL has been collecting property tax payments directly into its own bank account. Property owners, who are forced to make these payments, find that the Municipal Corporation of Gurugram (MCG) records still show outstanding amounts against their properties. As a result, when property owners have to interact with the government for any work, they are required to pay the outstanding property tax to the MCG again, despite having already made full payments to AIPL. This practice is illegal, as AIPL is charging property tax on behalf of the government without depositing the collected amounts with the appropriate authorities. By doing so, AIPL is effectively forfeiting the amounts paid to them by property owners, thereby cheating investors and causing further financial harm.

10. Allegations by Other Investors:

Several other investors have faced similar issues with AIPL. For instance, Mr. HKs food court unit was unjustly canceled during the COVID-19 pandemic while he was dealing with personal losses. AIPL's consistent pattern of behavior towards multiple investors strongly indicates systemic fraud. Please refer Annexure-I.

11. Legal Case and Defense:

I am currently involved in a legal case against AIPL concerning the non-delivery of physical possession, incorrect adjustment of returns, and other grievances. However, AIPL is attempting to defend itself by false claims, which are baseless and aimed at evading responsibility.

Annexure-I

Various legal cases have been filed by consumers against Advance India Projects Limited (AIPL) concerning issues such as non-payment of assured returns, denial of physical possession and leasing rights, increase in the area of the property, and other instances of misappropriation. The Opposite Party has demonstrated a similar pattern of behavior by issuing pre-termination notices and subsequently harassing consumers with termination letters for their units. These cases underscore the consumers' grievances and their pursuit of legal remedies to address violations of their rights and entitlements.

A few references are mentioned as under:

1. Complaint No. 2595 of 2021: Sh. Gulshan Kumar S/o Late Sh. M.S. Ranga

2. Complaint No. QR/692/2021: Neela Gambhir & Sasha Gambhir

3. Complaint No. 3721 of 2021: Smt. Kiran W/o Sh. Saniay Chawla, Sh. Sanlay Chawla s/o Sh CD. Chawla

4. Complaint No. CR/2635/2O22: Nikita Berwal

5. Complaint No. 428 of 2021 : Rajan Sharma, Charu Sharma

6. Complaint No. 501a of 2020: Smt Renu Gupta W/o Nishant Gupta, Nishant Gupta HUF

7. Complaint No. CRl2604/2021: Sarita Berwal

8. Complaint No. CR/3185/2020: Shipra Nagpal

9. Complaint No. CR/1034/2023: Sonia Kirori

10. Complaint No. CR/451.4/2021: Subhash Goyal

11. Complaint No. 2028/2019: Ms. Garima Ganeriwala

12. Complaint No. 86 of 2018: Reeta Raina & Others

13. Complaint No. 5383 of 2O19: Mrs Preetha Nair

14. Complaint No. 794/2018: Reeta Raina, Sushant Upadhyay

15. Complaint No. 1160/2024:Dipti Ranjan

16. Complaint No. C-12/2024:Satheesh Jogaraju

17. Complaint No. 7993 of 2022: Naresh Saran

18. Complaint No. 7998 of 2022: Naresh Saran

19. Complaint No. 4858 of 2022: Ajay Kumar Gupta

20. Complaint No. CR/139/2022: Rajesh Mittal

21. Complaint No. CR/2156/2021: Mayank Manu Bhardwaj

22. Complaint No. CR/5945/2022: Vikas Sharma

23. Complaint No.2414 of 2021: Jasvir Singh Nara

24. Complaint No. 1652 of 2022: Alok Gupta

25. Complaint No. 1135 of 2022: Alok Gupta

26. Complaint No. 466 of 2021: Ranjan Sharma, Charu Sharma

27. Complaint No. 4979 of 2021: Vivek Anand

28. Complaint No. 1112 of 2019: Atul Nayar (NCDRC)

29. Complaint No.: Arihant Kothari

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