You can approach the consumer forums mentioned in this article to complaint against these builders: http://www.ruly.in/free-Legal-Advice/Is-there-a-consumer-forum-dedicated-to-real-estate-agents-and-builders-/453 . We need to keep fighting against these corrupt louts through whatever means
In most cases, the money is siphoned overseas in violation of Indian laws and invested in countries which give dual citizenship in lieu. Thereafter the business owners and their family can reside in that country and remain insulated from the law enforcers in India. Mallyas have done so at the cost of abandoning their entire Indian operations. Saharas are also doing the same by abandoning their projects but continuing with their media, hotels and money deposit schemes which are still getting good amount of clean revenue.
Liquidation of properties or unfinished projects by law enforcers in India is a very slow and cumbersome process and proceeds from the same may not compensate for the financial, physical and mental losses for the affected stakeholders which shall keep mounting over a period of time.
Lastly, going to Jail may no longer be a deterrent for the rich as guest-house facilities with all comforts and luxuries are either available or made available for them within the confines of the prison. Its their money after all.