Mumbai Police EOW Arrests Radius Sumer Developers for ₹35.7 Crore Housing Fraud
The Economic Offences Wing (EOW) of the Mumbai Police has arrested Ramesh Shah and his son Rahul, prominent real estate developers, for cheating investors in a failed housing project in South Mumbai.
Real Estate FraudMumbai PoliceEconomic Offences WingRadius Sumer DevelopersInvestment ScamsReal EstateMay 17, 2025
The criminal case against Radius Sumer Developers Pvt. Ltd., along with real estate developers Sanjay Chhabria (51) and another, was registered last November. The EOW accused the developers of cheating two brothers, Mahesh Mirani (67) and his Hong Kong-based brother Purushottam Mirani, who invested a total of ₹52.50 crore in the project. The developers promised an investment opportunity that included 18,181 square feet of carpet area at a rate of ₹28,875 per square foot.
Mahesh and Purushottam Mirani, through their Metro Investment Partnership firm, invested ₹21.94 crore in advance. However, no construction work was undertaken within the two-year period stipulated in the agreement. In April 2019, a cancellation agreement was signed, under which the accused agreed to return ₹35.71 crore to the investors. The cheques issued by the developers bounced due to insufficient funds, further complicating the situation.
Apart from the Mirani brothers, 78 other flat buyers who had invested in the project were also duped. The project, which was supposed to include three towers of 25 stories each, never materialized. The investors were left without their funds and without the promised properties.
Ramesh Shah and Rahul Shah were arrested from their plush apartment in Gamdevi and were produced before a special MPID court. They were remanded to police custody. The case has shed light on the risks associated with real estate investments, especially in high-value projects where developers may promise unrealistically high returns.
The EOW's action in this case is a significant step towards ensuring accountability and transparency in the real estate sector. It also serves as a warning to other developers who may engage in similar fraudulent activities. The investigation is ongoing, and the authorities are working to recover the lost funds and bring all those involved to justice.
For potential investors, this case underscores the importance of due diligence and the need to verify the credibility and track record of real estate developers before making any significant investments. The EOW's proactive approach in handling such cases is expected to instill greater confidence in the market and protect the interests of investors.
Frequently Asked Questions
What is the total amount involved in the fraud case?
The total amount involved in the fraud case is ₹35.7 crore.
Who were the primary developers involved in the fraud?
The primary developers involved in the fraud are Ramesh Shah and his son Rahul Shah from Radius Sumer Developers Pvt. Ltd.
What was the name of the housing project involved in the fraud?
The housing project involved in the fraud is known as Harbour Heights at Mazgaon.
How many investors were affected by this fraud?
A total of 78 flat buyers, including the Mirani brothers, were affected by this fraud.
What actions did the EOW take after the arrest?
After the arrest, the EOW produced Ramesh Shah and Rahul Shah before a special MPID court, and they were remanded to police custody. The investigation is ongoing.
Related News Articles
Bollywood Power Couple Shahid Kapoor and Mira Rajput Invest in Luxury Mumbai Apartment
Shahid Kapoor and his wife Mira Rajput have acquired a second luxury sea-view apartment in Mumbai's Worli area
Navigating Schizophrenia in Mumbai's Housing Societies: Challenges and Solutions
Explore the unique challenges faced by housing societies in Mumbai when dealing with residents diagnosed with schizophrenia and the strategies being implemented to support mental health.
Smart Strategies to Reduce Construction Costs Without Compromising Cement Quality
Discover effective methods to lower construction costs while maintaining the integrity and quality of cement in your building projects.
2025: A Challenging Year for Equity Markets, Says Nikhil Gangil of Intrinsic Value
As the saying goes, a bear market is the real test of your strategy and behavior. Nikhil Gangil of Intrinsic Value shares his insights on the upcoming challenges for equity markets in 2025.
Maharashtra Invites Property Developers to Transform 3,360 Acres of State Bus Corp Land
The state of Maharashtra has extended an invitation to real estate companies to develop commercial and residential projects on a vast 3,360 acres owned by the Maharashtra State Road Transport Corporation (MSRTC).
Maharashtra Seals Mega Deals Worth Rs 15.70 Lakh Crore at WEF Davos
The Maharashtra government has signed significant Memorandums of Understanding (MoUs) worth Rs 15.70 lakh crore at the World Economic Forum (WEF) in Davos. These investments span various sectors, including petrochemicals, renewable energy, and real estate