Mumbai: Directors of Shah Housecon Booked for ₹5 Crore Fraud in SRA Project

In a significant development in the real estate sector of Mumbai, two directors of Shah Housecon Private Limited have been booked for allegedly cheating a developer of nearly ₹5 crore. The case was registered against Mansukh Shah and Akash Mansukh Shah by the Kasturba Marg police station, and the investigation has now been transferred to the Economic Offences Wing (EOW).

The real estate developer, Nilesh Narendra Raghani, filed a complaint against the duo, claiming that they presented him with details of the Khothodongri SRA Society redevelopment project located on Rani Sati Marg in Malad. According to Raghani, the project involved a 5,600 square metre plot, and his company was to bear the entire construction cost, while Shah Housecon was responsible for securing necessary permissions and relocating tenants. In return, Raghani's firm was to receive a fixed sale component area from the project.

Trusting the proposal, Raghani transferred ₹5.15 crore to the accused between May and July last year. However, even three months after signing the agreement, the accused allegedly failed to vacate the slum structures or clear the project title. Upon further investigation, Raghani discovered that the ownership of the plot did not rest with Shah Housecon but with a charitable trust. Based on this information, the police booked the duo for fraud.

The Slum Rehabilitation Authority (SRA) projects are crucial for Mumbai's urban development, aiming to provide housing for slum dwellers and improve living conditions. Such projects often involve complex legal and financial arrangements, making them vulnerable to fraudulent activities. This case highlights the need for stringent due diligence and regulatory oversight in the real estate sector, especially in SRA projects.

The Economic Offences Wing (EOW) is now handling the investigation, which is expected to delve deeper into the financial transactions and legal documentation to uncover the full extent of the alleged fraud. The case also serves as a cautionary tale for other developers and investors, emphasizing the importance of verifying the legitimacy of proposed projects and the credentials of the parties involved.

Shah Housecon Private Limited is a well-known real estate firm in Mumbai, with a history of involvement in various development projects. The company's reputation is now at stake, and the outcome of this investigation could have significant implications for its future operations and standing in the industry.

As the investigation progresses, the real estate community in Mumbai is closely watching the developments. The case underscores the need for transparency and accountability in the sector, which is essential for maintaining trust and fostering sustainable growth in the real estate market.