A First Information Report (FIR) was filed against Bharat Jain with the Bhayander police on Tuesday evening, when police charged him under Sections 420 and 406 of the Indian Penal Code.

The complaint was lodged by N B Merchant, who alleges that Jain and two others have swindled him of Rs 3.89 lakh.

Inspector P B Niphade of the Bhayander police station told Express Newsline that he wants time to verify the complaint, saying the investigating officer Vijay Kakde of the Mira Road police station will approach the police prosecutor tomorrow to verify the documents attached to the FIR and only then proceed in the matter.

Merchant (67) says he had approached Jain at his Sonam Builders office at Mira Road in May 1996 and booked a flat in the Golden Nest (Phase V) complex at Mira Road (East).

``I paid Jain Rs 1 lakhby cheque and Rs 40,000 in cash for stamp duty, registration fees, etc, but he still hasn't given me a copy of the agreement for verification of the title by my solicitors. He has refused despite repeated demands, on one pretext or the other,'' he told Express Newsline.

Subsequently, Merchant gave Jain two more cheques, for Rs 50,000 and Rs 51,650 in September 1996, for which two stamped receipts were issued. The same day, he paid an additional Rs 48,000. He says Jain's representative, P G Sawant, handed over an allotment letter for the flat.

However, in mid-1997, the flat number was changed from 603-B to 604-B. When Merchant met Jain on June 25, 1997 to clarify the change, Jain promised to hand over possession by December that year. With two more payments, of Rs 50,000 each on June 25, 1997, the total amount Merchant had given Jain amounted to Rs 3,89,650. ``But there was no communication from Jain about handing over the flat, nor did he give me a copy of the agreement. This shows he was dishonestfrom the beginning and intended to cheat property buyers like us,'' Merchant says.

Surprisingly, on January 2, 1998, Jain's office asked Merchant to pay a further Rs 2,08,330 with interest amounting to Rs 66,000, even when construction activity in buildings A & V of Golden Nest (Phase V) had stopped since several months. ``To fool customers, eight slabs were constructed but work stopped thereafter,'' he points out.

Merchant refused, demanding that he be given details of Jain's firm, but there was no reply forthcoming. Running out of patience, Merchant sent Jain a legal notice and also complained to senior police officers in Thane. He also spoke to Deputy Chief Minister Gopinath Munde, who directed him to the Bhayander police.

Jain himself is untraceable. His office says he is out of station.