July 7: A Rs 9 crore flat scam affecting over 1,200 people, has been unearthed by the police at Panvel by arresting two directors of a private builder firm. Senior police inspector M G Kawale of Panvel said that the firm floated an ambitious `Jaisheel township' supposed to have come up on farm lands amid a picturesque scenario near new panvel and several people, including a group of over 100 from the Bhabha Atomic Research Centre fell for the concept of owning a house against total cheque payment.

Between January 1995 and April 1997 the company, collected upto Rs one lakh each from prospective buyers promising them flats or bungalows. The project fell through since the area on which it was supposed to be built came under the green zone. The main promoter of the scheme, Hanumanta Palle - a mechanical engineer from Karad in Maharsashtra - died of a heart attack in January last year and his wife Jayaprabha has been managing affairs since them. She and her son Vijay have now been arrested following complaints by one of the victim member.

Police said the estate agents who marketed the scheme also benefited a lot and their life-style changed overnight as they drove around in modern limousines. Meanwhile, police said they were on the look out for the other four directors of the company.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.