The investors of Grosvenor Hotel development project are on the verge of getting their money back, as per the rule of high court. A High Court judge recently declared that Bristol developer converting Grosvenor Hotel forced into liquidation. Grosvenor hotel has been standing as the largest eyesore of Bristol for many years. But in 2016, a company called Grosvenor property developers Ltd. started a project to refurbish the eyesore & started collecting money from investors promising to sell them studio apartments in the building once it is refurbished.
General people invested their money for the company that claimed a huge development project in Bristol. Grosvenor Property Developers Ltd announced that they turned the longest standing inhabitable building of Bristol into a hi-tech student flat. Investors were told that every flat will be worth £99,000 each and estimated completion date would be September 2017, but it soon became apparent it would be insolvency practitioners who were moving in.
At first, people invested £5,000 from their savings/pension/earning to the project hoping that it will secure their future financially. But then the developers demanded £44,500 more that is half worth of each flat they previously declared. The company assured their investors through some fake photographs of constructions. They published a short video clip which they claimed as the internal construction process. But that video clip consisted of just some still photos. The Company cheated the investors like this evasion.
But at the time, investors were able to unmask the real face of the developers. It was finally clear that the developers were telling the false information all along. They didn’t even own the property that they claim to develop. The company hadn’t even submitted any formal application of planning for the reinstatement process of the proposed property.
At this point, the investors got frustrated and became desperate to restore their hard acquired money. So initially, they reported against the company to Action Fraud. Then they moved the case to London Metropolitan Police Fraud Investigative Bureau. The company was filed a petition to liquidate by investors in July, as they failed to see any work done inside or outside of the building in 2 years by visiting the site.
The present director of the company Arjun Khadka was given 28 days to return all the money to its investors of the project within 28 days last month. Then Arjun showed the excuse to the court, that the money was wound up in a project at Abu Dhabi, but even within the deadline, he failed to deliver the money, even a portion of it. So, the judge ordered the company to liquidate all its shares to repay the millions of pounds it collected in the devious scheme.
Now the number of real-estate scams is at its peak because now, dependency on the electric medium has expanded so much that we trust others with our life savings, who can only show us false certificate and pictures of their authority. So it is eminent that, the case is about another real-estate mistake. The investors filing the petition have become victims to another scheme, where they are living every moment in the fear of losing all as they’re fighting against expert players.