F R Rathva of Odhav police, who is investigating the case, said: “According to the complainants, the construction was done without procuring legal permission. Moreover, the loan that the builders procured for residents was also taken on forged documents.”

Rathva said the residents first came to know about the fraud in 2001 when after the earthquake the tenements and the water tanks on the parapets were damaged. When the residents asked the Ahmedabad civic body for repair work, the AMC stated that the society did not exist on the list of the civic body (despite the area being in municipal limits).

He added: “Moreover, the residents kept paying the instalments for the loan which never reached the bank.”

The Odhav police has said further investigations are on.