02.05.2025 11:31
A lawsuit has been filed against 13 defendants in connection with the Burj Al Babas project in Mudurnu, with a request for up to 885 years in prison on charges of qualified fraud. The project, marketed to foreign investors with a "castle" concept, raised 67 million dollars, but no deliveries were made. The prosecution stated that the promises were unrealistic from the very beginning and that the actions were carried out with fraudulent intent.
The large housing project launched under the name "Burj Al Babas" in the Mudurnu district of Bolu has turned into a massive fraud case along with the indictment prepared by the prosecutor's office. In the project that promised a fairy-tale life, a total of 885 years of imprisonment is requested for 13 defendants on charges of "qualified fraud."
CASTLE-LIKE HOUSES, UNREALISTIC PROMISES
Launched in 2014, the project marketed "castle villas" with a size of 325 square meters, featuring towers and luxurious interiors to investors from Gulf countries. A series of amenities such as thermal facilities, beauty centers, horseback riding areas, cinemas, and gyms were also included in the project. Promoted with the slogan "Buy your own castle," the project gradually turned into a ghost town.
67 MILLION DOLLAR INVESTMENT, ZERO DELIVERIES
According to the report by the Financial Crimes Investigation Board (MASAK), a total of 67 million 180 thousand dollars flowed into the companies running the project between 2014 and 2018. All the money came from Kuwaiti investors. However, no housing units were completed in the project, and no deliveries were made. Most of the services promised by the company were never realized.
ALLEGATION OF "CASH PAYMENTS, TAX EVASION"
According to the indictment, some payments were received in cash from buyers to avoid bank fees and taxes. However, there are missing official documents regarding the payments made, and there are significant discrepancies between the records and bank data. 59 investors applied to the prosecutor's office, claiming they were defrauded.
COMPANIES PLACED UNDER ADMINISTRATION, PROJECT LEFT INCOMPLETE
Three companies of the Sarot Group running the project filed for concordat in 2018 and subsequently went bankrupt. Although the bankruptcy decision was temporarily lifted and permission to continue was granted, construction was halted again. While an administrator was appointed to the project, according to the 2025 report by the Savings Deposit Insurance Fund (TMSF), the cost required to complete the project is between 162 and 188 million dollars.
FAMILIAR NAMES ON THE DEFENDANTS' LIST
The indictment prepared by the Istanbul Chief Public Prosecutor's Office includes Sarot Group executives Mehmet Emin Yerdelen, Adem Tekgöz, and Mezher Yerdelen among the defendants. The prosecutor's office not only requested imprisonment but also the confiscation of the real estate and company shares belonging to the defendants.
Source: Hürriyet - Musa Kesler