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
Small Cities, Big Opportunities: How Tier-2 and Tier-3 Cities are Revolutionizing the Real Estate Market
Mid-tier cities like Faridabad, Lucknow, Vrindavan, Ludhiana, Chandigarh, Indore, Dehradun, and Jaipur are becoming hotspots in the real estate market, offering a low-cost, peaceful life and high returns on investment.
PM Modi to Launch Multiple Development Projects in Maharashtra Worth Over Rs 56,000 Crore
Prime Minister Narendra Modi will visit Maharashtra on Saturday to launch several development initiatives costing over Rs 56,000 crore, including the BKC-Aarey JVLR section of Mumbai Metro Line - 3 and various agricultural and animal husbandry projects.
Cornell University: Klarman Fellow Reveals Insights on Housing Costs
A Klarman Fellow at Cornell University has conducted a groundbreaking analysis of housing costs, providing new insights into the factors affecting real estate development and the built environment. This research has significant implications for urban plan
Mumbai Real Estate Projects Halted by New Environmental Clearance Order
The real estate sector in Mumbai is experiencing significant disruptions due to a recent directive from the National Green Tribunal (NGT). This order has led to the suspension of nearly 200 projects in the Mumbai Metropolitan Region (MMR), causing delays
Bhubaneswar: SJTA to Launch Online Platform for Land Settlements
Currently, individuals occupying temple lands submit manual applications to SJTA for property sale or transfer. This process is set to become more efficient with the launch of an online platform.
Mumbai Property Registrations Show Strong Growth in February 2025
Mumbai witnessed a significant rise in property registrations in February 2025, with 12,056 units registered, according to real estate consultant Knight Frank India. This growth indicates a robust market recovery and increased investor confidence in the c