Mumbai EOW Books Construction Firm Directors for Rs 5.15 Crore Fraud in Slum Redevelopment

MUMBAI: The Economic Offences Wing (EOW) in Mumbai has booked the directors of a construction firm and the son of one of the directors for allegedly defrauding a businessman of Rs 5.15 crore. The case revolves around a slum redevelopment project at Rani Sati Marg, Malad (East).

The EOW is investigating an alleged cheating case after real estate director Nilesh Raghani accused the promoters of Shah Housecon Pvt. Ltd. of defrauding his company through false promises and misleading agreements. According to the FIR registered with the Kasturba Marg police, Raghani, the director and 99 percent shareholder of Classic Treasure Pvt. Ltd., was introduced to directors Mansukh H. Shah and his son Akash Mansukh Shah in March 2025 regarding an SRA redevelopment project at Khot Dongri Cooperative Housing Society.

A term sheet dated May 6, 2025, followed by an MoU on May 17, 2025, and a supplementary MoU on July 16, 2025, were executed for the development of a 5,600 sq metre plot with a proposed 4.5 lakh sq ft sale component. Raghani claimed that his company paid a total of Rs. 5.15 crore in instalments as per the MoU schedule.

However, he later discovered that Shah Housecon allegedly failed to carry out essential redevelopment work such as eviction of occupants, title creation, and coordination with stakeholders. He further alleged that development rights over that particular land were falsely represented, as the ownership was reportedly with a charitable trust.

Raghani also stated that the accused had entered into parallel agreements with other developers and allegedly demanded an additional Rs. 25 crore, along with threats when the demand was refused. Raghani has accused the directors of misusing funds, concealing disputes related to the land, and issuing termination notices after receiving payments.

The complaint further alleges that many of the purported slum dwellers shown on the 5,600 sq metre plot were not recognized original occupants under Slum Rehabilitation Authority (SRA) records. It is also alleged that certain encroachments were created with the help of a local resident, from whom rent of Rs3,000 to Rs4,000 per month was being collected. Additionally, some slum dwellers have allegedly filed a writ petition in the High Court against Shah Housecon for failing to provide rent or alternate accommodation.

The FIR also alleges that Shah Housecon entered into separate redevelopment agreements for the same plot with other developers, including Jha Buildcon LLP (Rs6.93 crore), B-Right Real Estate Ventures LLP (Rs14 crore), and Salasar Land Developers, collecting substantial sums from them as well.

The EOW is now thoroughly investigating the allegations to determine the extent of the fraud and the parties involved. The case highlights the complexities and potential pitfalls in real estate and slum redevelopment projects, especially when there are hidden disputes and multiple parties claiming rights over the same land.