The police said arrested builder Rakesh Singh along with some more partners were running firm named Akruti builders and Developers in Kalyan and hunt for other partners is also on.
The cop have also sent notices to four nationalised banks to freeze company's bank accounts so the money cannot be withdrawn. The police said Akruti builders and developer's office was situated near Oakbuag area in Kalyan. For the past two years builder were showing some sample flats constructed by them to people in Nevali Naka situated in Ambernath Taluka and were taking money from them with promise to give them possession by end of Diwali festival however when people found office was shut after Diwali on Monday around 325 people approached to local Mahatma Phule police and lodge case with them. However till Tuesday the numbers of cheated people reached up to 425.
Deepak Katke, senior police inspector of Mahatma Phule police station said, "We are also probing role of gram panchayat as primary probe suggest that entire project was illegal and land belongs to the gram panchayat".
Police are also checking if it's officials were involved in to scam.
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