Mumbai Police EOW Arrests Prominent Real Estate Developers for ₹35.7 Crore Fraud
The Economic Offences Wing (EOW) of the Mumbai Police has arrested Ramesh Shah and his son Rahul for allegedly defrauding investors in a failed South Mumbai housing project, Harbor Heights.
Real Estate FraudMumbai PoliceEowHousing ProjectInvestor FraudReal Estate NewsMay 17, 2025
Last November, a criminal case was registered against Radius Sumer Developers Pvt. Ltd., along with real estate developers Sanjay Chhabria (51) and another individual, by the EOW. The case was initiated for allegedly defrauding two brothers of Rs 35.71 crore by getting them to invest in the development project Harbor Heights at Mazgaon. The project was marketed as a lucrative opportunity for NRIs seeking investment in Indian real estate.
Ramesh Shah and Rahul Shah were arrested for allegedly luring 78 flat buyers to invest in a housing project in Mazgaon and failing to develop the project, thereby cheating investors of Rs 35.7 crore. The father-son duo was apprehended from their plush apartment in Gamdevi and produced in a special MPID court, where they were remanded to police custody.
The case was filed based on a complaint from Mahesh Mirani (67), a resident of Bandra West. According to the complaint, the accused persuaded Mahesh Mirani and his Hong Kong-based brother, NRI Purushottam Mirani, to invest in their Harbor Heights project in Mazgaon. The accused assured them 18,181 square feet of carpet area at a rate of Rs 28,875 per square foot, prompting a total investment of Rs 52.50 crore.
Mahesh and Purushottam Mirani together invested Rs 21.94 crore in advance under the name of their Metro Investment Partnership firm in Radius Sumer Developers' project. However, no construction work was undertaken within two years as per the agreement. In April 2019, a cancellation agreement was signed, under which the accused agreed to return Rs 35.71 crore and issued cheques which bounced due to insufficient funds, said a senior EOW official.
Apart from the Mirani brothers, 77 others who had booked flats in the failed housing project of three towers of 25 stories each were also duped. The Mirani brothers alleged that despite repeated assurances and documented agreements, Radius Sumer Developers neither progressed with the construction nor returned the invested funds.
The arrest of Ramesh and Rahul Shah marks a significant step in the ongoing efforts to bring justice to the investors and to curb fraudulent activities in the real estate sector. The EOW continues to investigate the case to ensure that all parties involved are held accountable for their actions.
Frequently Asked Questions
Who were the developers arrested in the fraud case?
Ramesh Shah (65) and his son Rahul (40) were arrested by the Economic Offences Wing (EOW) of the Mumbai Police.
What was the total amount of the alleged fraud?
The total amount of the alleged fraud was Rs 35.71 crore.
What was the name of the housing project involved in the fraud?
The housing project involved in the fraud was Harbor Heights, located in Mazgaon, South Mumbai.
How many investors were affected by the fraud?
A total of 78 investors were affected by the fraud, including the Mirani brothers.
What actions were taken by the EOW after the arrest?
The father-son duo was remanded to police custody and the EOW continues to investigate the case to ensure all parties involved are held accountable.
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