Mumbai Builder Arrested for Allegedly Cheating Hotelier of ₹9.3 Crore
Mumbai Police have taken significant action against economic offenses by booking a prominent city-based builder, Niraj Gunwant Kakad, for allegedly cheating hotelier Shahid Shaukat Sarkar of ₹9.3 crore. Kakad, the proprietor of Niraj Kakad Constructions based in Vile Parle, is involved in several real estate projects across Mumbai, including in the upscale Bandra locality.
According to the police, the case dates back to February 2014 when Kakad approached Sarkar seeking a loan of ₹8 crore for a period of one year at an annual interest rate of 12%. Based on the assurance, Sarkar extended the financial assistance. He transferred ₹7.5 crore on February 7, 2014, ₹46 lakh on February 12, 2014, and ₹4 lakh on February 14, 2014 through RTGS from his HDFC Bank account to the account of Niraj Kakad Constructions.
The FIR, registered under Sections 420 (cheating), 409 (criminal breach of trust), and 120-B (criminal conspiracy) of the Indian Penal Code, states that Kakad issued multiple cheques as security, which were not meant to be deposited. These included cheques of ₹35 lakh, ₹50 lakh, and ₹15 lakh drawn on Punjab National Bank. In February 2018, at Kakad’s request, the cheques were returned and replaced with undated cheques for the same amounts.
In a letter dated December 8, 2017, Kakad acknowledged receipt of ₹8.65 crore and admitted his inability to repay due to financial constraints. He also confirmed that interest of ₹2.16 crore at 12% per annum had accrued till December 1, 2017, and sought an extension till February 5, 2018, assuring repayment of the principal and interest. However, despite repeated assurances, the builder allegedly failed to repay the dues. The total outstanding amount is stated to be ₹9.3 crore.
Investigations further revealed that Kakad had mortgaged a property to Capital First Limited, which had initiated legal proceedings against his firm in the Bombay High Court. As part of proposed consent terms, Sarkar was to be allotted two flats measuring around 3,200 sq ft in a building named ‘Naik Kakad Nivas’, in lieu of the loan amount. The arrangement, however, did not materialize.
Police said the latest case adds to a series of complaints against the developer. In 2025, an FIR (No. 1797/2025) filed by Khalifa Infrastructure LLP had led to an FIR against Kakad. At least eight other complaints alleging the sale of mortgaged properties to multiple buyers are also under probe.
