A director of a private company has been arrested and remanded over allegations of defrauding the public through a housing and land scheme promoted on social media, police said.
The arrest was made by the Mirihana Special Crimes Investigation Division following an investigation into complaints that the company promised to provide houses and land under an easy payment plan.
According to investigators, customers were persuaded to sign agreements and pay an advance amount amounting to 60% of the total value of the house and land. However, after receiving the payments, the company allegedly failed to deliver the promised houses.
Police further revealed that customers who later sought refunds were issued cheques that were subsequently dishonoured.
The suspect, a 48-year-old resident of Negombo, was produced before the Nugegoda Magistrate's Court on July 28 and remanded until August 4.
Police said five complaints have been received so far, with more victims expected to come forward. Further investigations are continuing.
