CM Yogi’s Tough Stance: UP Police Register FIR Against Ansal Group On Allegations Of Cheating Homebuyers

Lucknow: The Uttar Pradesh Police, on Tuesday, registered an FIR against real estate developer Ansal Group for alleged cheating, breach of trust and criminal conspiracy. The FIR was registered at the Gomti Nagar police station in Lucknow a day after Chief Minister Yogi Adityanath instructed officials to take strict action in the matter and safeguard homebuyers' interest. CM Yogi also invoked the real estate group's name on Tuesday inside the state assembly to slam opposition Samajwadi Party, accusing it of favouring such builders during its regime. The senior officials confirmed the registration of the FIR, as reported by the news agency PTI. 

The Ansal Group has been accused of accepting over Rs 30 lakhs through cheques for booking a 240 square metre plot in its Sushant Golf City project on Shaheed Path in Lucknow. However, the plot has not been given to the buyer even after a period of eight years. Notably, earlier in 2019, a similar FIR was registered against the group, accusing its authorities of cheating investors.

The National Company Law Tribunal (NCLT) has admitted Ansal Properties and Infrastructure Limited (APIL) into the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016, as of February 25. The tribunal's decision follows a petition by IL&FS Financial Services Limited (IL&FS) regarding a loan default amounting to Rs 257 crores. IL&FS Financial Services alleged that the listed entity Ansal API failed to repay loans totalling Rs 257 crore and did not adhere to the terms of a settlement agreement reached in 2022.

The consequences of the Ansal Group's actions are far-reaching. The incident has highlighted the need for stricter regulations and oversight in the real estate industry. 

Earlier in 2020, the group was accused of violating environmental norms in one of its construction projects. The group has also been accused of delaying possession of flats to its customers, leading to protests and demonstrations.

Following the registration of the FIR, the police are taking further legal action in the matter. 

'FIRs In All Districts…'

CM Yogi has taken swift action against the Ansal Group, directing officials to file FIRs in all districts where homebuyers have reported fraud, similar to cases in Lucknow. This move aims to protect the interests of homebuyers and ensure that those responsible are held accountable.

To further support this effort, CM Yogi has instructed the formation of a committee comprising representatives from the Lucknow Development Authority (LDA) and aggrieved buyers. This committee will play a crucial role in compiling strong evidence against Ansal API, facilitating swift legal action against the group.

The committee's formation is a significant step towards ensuring that justice is served and that homebuyers receive the protection they deserve. By working together with the LDA and aggrieved buyers, the committee will help build a strong case against Ansal API, ultimately holding them accountable for their actions.

CM Yogi's Stern Warning

Earlier in the day, UP CM Yogi Adityanath tore into the Samajwadi Party (SP) over the Ansal Group issue, issuing a stern warning to builders who have deceived home buyers in the state. During the assembly debate on the annual budget for 2025-26, Adityanath declared that all Ansal Group assets would be seized if even one home buyer was defrauded.

He assured that the culprits would face strict punishment, no matter how hard they tried to hide. CM Yogi accused the SP of shielding the Ansal Group, claiming the company was a product of the party's regime. He alleged that during the SP's rule, Ansal's illegal demands were met at the expense of investors and home buyers, who were blatantly cheated.

Adityanath stated that his government has curtailed these privileges and begun tightening the noose around the company. He asserted that his administration would leave no stone unturned in bringing the perpetrators to justice.