Suspected fraud builders, Bhupender Singh Dhillon, 37, of NIBM Road, and Maruti Kadale, 48, and his son Abhijit, 27, of Kondhwa were remanded in police custody by the judicial magistrate (first class) Khadki on Monday.

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The trio was arrested by the Vishrantwadi police on Sunday for allegedly duping 276 government employees to the tune of Rs3.50 crore by promising flats at reasonable rates, which never materialised.

The arrests happened when the angry mob of customers, who had been duped by the trio, forcibly took the builders to the police station and compelled the latter to arrest them.

According to the police, the builders had set up at a development company known as KDG Company three years ago, which was to provide flats at reasonable rates to government employees. The site where the project was to come up was located on four acres in Chiroli, off Alandi Road. The flats were promised to be handed over in 18 months. However, other than the sample flat, no other construction activity took place.