Virendra Jain, an NRI businessman based in the US, was in India in 2010 for his daughter's wedding when he came across a newspaper advertisement about a real estate project promising assured returns. But now instead of realising his dream, he is waging a long-drawn legal battle with the developer.

Key Highlights Of the 1,274 investors in the swanky realty project in Haryana 600 are NRIs.

"PM Modi urges NRIs to invest in India, but with situations like this, no one will invest in India," one investor said.

The funds for the project has been siphoned off to various companies controlled by them.

GURGAON: Virendra Jain, an NRI businessman based in the US, was in India in 2010 for his daughter's wedding when he came across a newspaper advertisement about a real estate project promising assured returns.

Upbeat about the growing Indian economy, Jain invested Rs 60 lakh in commercial real estate project Spire Edge of AN Buildwell in Manesar hoping to get fixed rental income and return to India.

But his dream of returning to his motherland with guaranteed fixed income has been dashed in a long-drawn legal battle with the developer. He curses his decision to invest in real estate in India and is now forced to make several unscheduled trips to this country to pursue his legal fight against the developer.

"I will now think several times before finally returning to India and make any investment in this country," said Jain. Jain is not alone. There are over 600 NRI investors who are struggling to get their property several years after investment in the Spire Edge commercial project that was launched in 2008.

"We never thought that some people could cheat us in a place like Manesar, barely 50 km from the national capital, and no action will be taken against the accused," said Pradeep Sharma, another NRI investor based in Singapore, who had invested Rs 55 lakh to purchase commercial space in the project.

He claimed that his complaints to the Prime Minister's Office, Haryana Chief Minister's Office went unheard. "Prime Minister Modi urges NRIs to invest in India, but with a situation like this, where investment is not safe, no one will invest in India," he said. Jain alleged that the developer had lured NRI investors with aggressive marketing with the promise of assured returns. "I have come across 40 people in the US alone, who have invested in Spire Edge," he said.

All the 1,274 investors, including the 600 NRIs, in the Spire Edge project have now formed an association called Federation of Spire Edge Customers Association (FOSECA). At a press conference in Gurgaon on Saturday, they alleged financial irregularities of the company and presented documents showing how AN Buildwell diverted funds from the project to other companies for purchasing land.

"A sum of Rs 41 crore was diverted to various parties in 2010-11 for purchase of land for new projects in Gurgaon," according to an audited document of the company's financial statement.

TOI has all the documents showing financial transactions between AN Buildwell and other companies. Vikas Sethi, who is heading FOSECA, said he got the documents received through RTI queries. "Directors of AN Buildwell have siphoned off funds to the tune of Rs 42.05 crore to various companies controlled by them. Funds have been siphoned off from AN Buildwell to other related parties and other means even while liquidation of the company was ordered for not furnishing a paltry sum of Rs 75 lakh," he said.

"The company was forced into liquidation in an attempt to cover up siphoning and diversion of funds. If liquidation happens then it will adversely affect the interest of buyers," said JP Syal, a retired police officer and one of the investors.

