Three realtors from Bharathi Builders were arrested by Hyderabad police for allegedly duping investors of ₹60 crore through false pre-launch offers. The accused—Chairman D Nagaraju, Managing Director M Shivarama Krishna, and CEO T Narasimha Rao—promised to construct residential apartments, "Bharathi Lake View," in Kompally. They acquired 6 acres of land and attracted buyers by offering flats at ₹3,200 per sq. ft. through colorful brochures and meetings. Over 350 investors, including the complainant, paid deposits. Instead of constructing the apartments, the accused sold the land to another party. Police registered a case and urged the public to avoid investing in pre-launch offers without proper verification. 

This scam could have been entirely prevented with Castler Escrow, a secure platform that protects payments until all transaction conditions are verified and both parties are fully satisfied. In this scenario, the buyer would have deposited the funds into Castler’s escrow account, ensuring that the payment was released only after verifying property ownership and possession. With Castler Escrow Service, the buyer’s funds would have remained secure, guaranteeing that payments were transferred only after meeting all legal and contractual requirements. Even if the seller attempted fraud, the transaction would have been paused, safeguarding the buyer from financial loss.

 Castler could have effectively prevented this fraud by providing a secure and transparent payment process that ensures funds are only released when all legal and contractual conditions are verified. Here’s how: 

 1. Compliance and Document Authentication 

The platform ensures that developers provide approved plans, permits, and legal clearances before transactions proceed. Any discrepancies, such as missing approvals or incomplete documentation, would have been flagged, preventing funds from being disbursed. 

2. Conditional Payments Based on Milestones

 Payments through Castler are milestone-based, meaning funds are released only after verifying key deliverables like project approvals, foundation work, and structural progress. Since the developers failed to start construction, funds would have been frozen in escrow, protecting investors.

 3. Transparency and Audit Trail 

Castler maintains a digital audit trail that records every transaction, ensuring transparency and accountability throughout the process. Investors could have tracked the status of payments and project progress in real time, reducing the risk of fraud. 

4. Dispute Resolution Mechanism 

If disputes or irregularities arose, Castler offers a dispute resolution process to pause transactions and resolve issues before any payment is released. This would have given investors time to investigate concerns and withdraw safely.

 5. KYC and Developer Verification 

Castler verifies the identity, background, and credentials of developers through Know Your Customer (KYC) checks, exposing fraudsters and ensuring compliance with regulations. 

Conclusion

 By leveraging Castler Escrow, investors would have been protected from this fraud, as payments would only be released after legal ownership, project approvals, and construction progress were verified. This case highlights the importance of escrow-based solutions in securing high-value real estate transactions and preventing scams.