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One of Türkiye's most ambitious luxury housing projects, the Burj Al Babas in Bolu’s Mudurnu district, is now the subject of a major fraud trial.
Prosecutors have demanded prison sentences of up to 885 years for each of the 13 defendants involved in the project, which promised buyers a fairy-tale lifestyle but delivered only a ghost town.
Launched in 2014, Burj Al Babas was designed as a thermal resort and residential complex consisting of 732 identical "castle villas," each measuring 325 square meters. The villas featured blue towers, spiral staircases, and lavish interiors. The name "Burj," meaning "tower" in Arabic, was deliberately chosen to attract investors from Gulf countries.
Marketing campaigns invited buyers to "own your castle," promising a lifestyle complete with beauty centers, cinemas, horseback riding trails, sports complexes, and entertainment venues. Yet not a single villa was delivered.
Between 2014 and 2018, the companies behind the project received $67.18 million from 1,041 financial transactions, according to Türkiye’s Financial Crimes Investigation Board (MASAK).
All payments came from Kuwaiti investors, including prominent businesspeople. Despite the sales, construction stalled, and 59 individuals filed complaints claiming they had been defrauded.
According to the indictment prepared by the Istanbul Chief Public Prosecutor’s Office, the developers never intended to complete the project.
Even after the companies involved—part of Sarot Group—filed for bankruptcy protection in 2018, sales reportedly continued. As recently as 2024, statements were made claiming that construction would resume soon.
"The entire process was designed to defraud," the prosecutor’s office stated, arguing that the luxury project was a facade from the beginning.
Among the accused are Sarot Group executives Mehmet Emin Yerdelen, Adem Tekgoz, and Mezher Yerdelen. The indictment seeks 885 years in prison for each defendant, citing charges of aggravated fraud against 59 victims.
In addition to prison time, prosecutors have asked the court to seize all real estate and company shares belonging to the suspects.
A report prepared by the Savings Deposit Insurance Fund (TMSF) on March 6 estimates that completing the project under state supervision would now cost between $162 million and $188 million. However, due to missing or unreliable records, it remains unclear how much money each buyer paid or who owns which villa.
Even before legal troubles began, Burj Al Babas sparked debate for its architectural style and environmental footprint.
Designed to resemble French chateaux, the villas stood in sharp contrast to Mudurnu’s traditional Ottoman architecture. Residents and environmental activists criticized the project for disrupting the region’s visual and ecological balance.
Trees were cut to make way for the project, and the use of thermal springs for private spa facilities drew further backlash. Critics also raised concerns about the castles’ dense layout and lack of outdoor space, arguing that the design prioritized appearance over livability.
Burj Al Babas has become a cautionary tale for Türkiye’s housing sector. The project combined bold marketing, foreign capital, and unchecked ambition—but lacked sustainability and transparency. Its downfall highlights the risks of building mega-developments aimed at overseas investors without solid financial planning or local support.
Though sold as a symbol of luxury, Burj Al Babas now stands as a failed investment. Dozens of unfinished villas stretch across the valley, slowly decaying under government control. As the trial unfolds, buyers, locals, and critics alike are left asking whether this ghost town will ever see resolution.
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