Mumbai Police Crackdown on Real Estate Fraud: Developers Booked for Cheating
The Mumbai police have booked two directors of Shriji developers and an estate agent for cheating a real estate investor of Rs 2.25 crores.
Real Estate FraudMumbai PoliceShriji ConstructionsRuparel RealityReraReal Estate MumbaiJul 17, 2024
The complaint was filed by Narendra Shah, a real estate investor, who alleged that he had invested Rs 2 crores in 2019 to book seven flats in a housing project undertaken by Shriji constructions in Kandivali west. The project was supposed to be completed by 2021, but Shah discovered that the developer had sold the project to Ruparel Reality instead.
According to Shah's FIR, he was introduced to the Mehtas through Bafna in 2019. The Mehtas informed him about their firm's ongoing housing project in Kandivali west, which involved rehabilitating people under the SRA Scheme and selling flats in the saleable component. Shah visited the site, saw the construction in progress, and was assured by the Mehtas that investing in the project would yield good returns in the future. Convinced, Shah booked six flats and signed the sale purchase agreement, paying the Mehtas Rs 1.75 crores in various installments. Additionally, he paid Rs 35 lakhs for seven parking lots, Rs 25 lakhs for registration and stamp duty, Rs 10 lakhs for GST, and Rs 7 lakhs as commission to the estate agent.
However, in 2022, Shah was shocked to learn that the Mehtas had sold the project to Ruparel Realty, effectively canceling the agreement between them and Shah. Despite repeated promises to return his investment of Rs 2.25 crores, the Mehtas failed to do so, leaving Shah feeling cheated.
The Kandivali police have now initiated an investigation into the matter. This move is seen as a welcome step towards curbing real estate fraud in the city.
information Shriji constructions is a real estate development company based in Mumbai, known for its projects in the western suburbs. Ruparel Reality is another real estate development company based in Mumbai.
RERA (Real Estate Regulatory Authority) is a regulatory body established by the government to regulate the real estate sector.
Commenting on the situation, Thane-based social activist Melwyn Fernandes stated, 'Today the real estate investment is dangerous for common people, it is not safe, after many stringent laws like RERA, MPID etc against developers But common Citizens will lose their hard-earned money, which was saved for their retirement age, repeatedly in last few years Maharashtra government should bring suo moto new law to tackle this huge financial frauds in real estate sector.',
Frequently Asked Questions
What is the amount of money involved in the fraud?
Rs 2.25 crores
Who filed the complaint against the developers?
Narendra Shah, a real estate investor
What is the name of the project where the fraud took place?
Shriji constructions' housing project in Kandivali west
What is the role of RERA in real estate sector?
RERA is a regulatory body established by the government to regulate the real estate sector.
What is the demand of social activist Melwyn Fernandes?
He demands a new law to tackle financial frauds in real estate sector.
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