Ek rupaya dya, ani flat tumcha navavar kara’ (‘Pay Rs 1 and get the flat in your name’). Karrm developers enticed customers from lower middle-class families with their offers of ‘Zero down payment, pay Rs 7,900/Rs 5,000 monthly for 100 months.’ However, this attractive pitch concealed a Ponzi scheme that targeted unsuspecting customers. These customers, mostly from lower middle-class families, were induced to sign multiple blank documents, along with personal documents like Aadhaar, PAN, and proof of address, during the flat-booking process. Unfortunately, the promised flats either never materialised or remained incomplete.

A shock awaited most of the 11,500 customers when they began receiving recovery notices from various banks and NBFCs for housing loans they were unaware of. In some instances, loans were even disbursed to the developer without a registered sale agreement. Some customers discovered that the same flat documents had been presented to multiple banks and NBFCs, resulting in multiple loan approvals.