Mumbai Police EOW Arrests Real Estate Developers for ₹35.7 Crore Fraud in South Mumbai Housing Project

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, Harbour Heights, involving a total of ₹35.7 crore.

Real EstateFraudMumbaiHousing ProjectEowReal Estate NewsMay 17, 2025

Mumbai Police EOW Arrests Real Estate Developers for ₹35.7 Crore Fraud in South Mumbai Housing Project

Real Estate News:The Economic Offences Wing (EOW) of the Mumbai Police has taken significant action against real estate developers Ramesh Shah (65) and his son Rahul (40) for their alleged involvement in a large-scale fraud. The father-son duo is accused of cheating investors in a failed housing project in South Mumbai, specifically the Harbour Heights project in Mazgaon. 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 involves the alleged defrauding of two brothers, Mahesh Mirani and Purushottam Mirani, who invested Rs 35.71 crore in the development project. The project was promoted as a lucrative opportunity for Non-Resident Indians (NRIs) seeking to invest in Indian real estate. Ramesh Shah and Rahul Shah were arrested for allegedly luring 78 flat buyers to invest in the housing project in Mazgaon. Despite receiving the investments, the developers failed to develop the project, thereby cheating the investors of Rs 35.7 crore. The father-son duo was arrested 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, Purushottam Mirani, to invest in their Harbour 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, as stated by 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. This arrest is a significant step in bringing justice to the investors who were cheated out of their hard-earned money. The EOW continues to investigate the case to ensure that all those involved are held accountable for their actions.

Frequently Asked Questions

Who were the developers arrested by the Mumbai Police EOW? A: The developers arrested by the Mumbai Police EOW are Ramesh Shah (65) and his son Rahul (40) from Radius Sumer Developers Pvt. Ltd. Q: What is the total amount of the alleged fraud? A: The total amount of the alleged fraud in the Harbour Heights housing project is ₹35.7 crore. Q: How many investors were cheated in this housing project? A: A total of 78 flat buyers were cheated in the Harbour Heights housing project in Mazgaon. Q: What was the name of the project involved in the fraud? A: The project involved in the fraud is called Harbour Heights, located in Mazgaon, South Mumbai. Q: What action did the EOW take after the fraud was discovered? A: The EOW registered a criminal case against the developers and arrested Ramesh Shah and Rahul Shah, remanding them to police custody.

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