The director of a private company has been arrested by the Mirihana Special Crimes Investigation Division over an alleged scheme that defrauded members of the public by promising houses and land on easy payment terms.
Police said the suspect, a 48-year-old resident of Negombo, promoted the scheme through advertisements on social media, telling prospective customers they could obtain houses and land through affordable payment plans.
Buyers were required to sign agreements and pay an advance equivalent to 60 percent of the total value of the house and land, according to police.
Investigations found that after collecting those advances the suspect allegedly failed to construct or hand over the promised houses. Customers who subsequently asked for their money back were issued cheques that were later dishonoured, police said.
The Mirihana Special Crimes Investigation Division has received five complaints in connection with the alleged fraud so far, and police expect further complaints from other affected people to come forward.
The suspect was produced before the Nugegoda Magistrate’s Court on July 28 and remanded until August 4.
Further investigations are being conducted by the Mirihana Special Crimes Investigation Division.
Advance-payment property schemes advertised on social media have drawn repeated warnings from Sri Lankan authorities, with regulators cautioning the public against transferring large sums to unregistered operators promising below-market housing. The Central Bank has separately urged media outlets to exercise caution over advertisements for unauthorised investment schemes.
Police did not name the company involved or give a total value for the sums allegedly collected. The number of complaints and the amounts at issue may rise as the investigation continues.
