Police have arrested a 48-year-old company director from Negombo on suspicion of defrauding the public through a fraudulent property scheme that promised houses and land on easy payment terms.

A director of a private company has been arrested by the Mirihana Special Crimes Investigation Unit in connection with allegations of public fraud related to a residential property scheme. The 48-year-old Negombo resident is accused of promoting the scheme via social media advertisements that offered houses and land available through installment payment arrangements.

According to police investigations, the scheme operated by collecting substantial advance payments from interested customers. Those who responded to the advertisements were required to sign agreements and provide advance payments totaling approximately 60% of the claimed property value. Despite collecting these payments, the suspect allegedly failed to complete construction of the promised properties.

The investigation also revealed that when customers requested refunds, cheques issued by the company were dishonoured, leaving victims without recourse. The Mirihana Special Crimes Investigation Unit has documented five formal complaints so far, though authorities indicate that additional victims may step forward as the investigation continues.

The suspect appeared before the Nugegoda Magistrate's Court on July 28 and was remanded in custody until August 4 to allow for further investigation and evidence gathering. The Special Crimes Investigation Unit continues its enquiries into the matter.