Mumbai Police EOW Cracks Down on Real Estate Fraud: Developers Arrested for ₹35.7 Crore Scam

The Economic Offences Wing (EOW) of the Mumbai Police has arrested real estate developers Ramesh Shah and his son Rahul for allegedly defrauding investors in a failed housing project in South Mumbai. The developers are accused of cheating 78 flat buyers of ₹35.7 crore.

Real EstateFraudMumbai PoliceEowRadius Sumer DevelopersReal Estate MumbaiMay 17, 2025

Mumbai Police EOW Cracks Down on Real Estate Fraud: Developers Arrested for ₹35.7 Crore Scam

Real Estate Mumbai:The Economic Offences Wing (EOW) of the Mumbai Police has taken significant action against a prominent real estate developer and his son for a major fraud case. Ramesh Shah (65) and his son Rahul (40) were arrested for allegedly cheating investors in a failed housing project in South Mumbai. The case was registered last November against Radius Sumer Developers Pvt. Ltd., along with real estate developers Sanjay Chhabria (51) and another individual, for defrauding two brothers of ₹35.71 crore. The project, known as Harbour Heights, was located in Mazgaon and was promoted as a lucrative opportunity for NRIs seeking investment in Indian real estate. Ramesh Shah and Rahul Shah were also accused of luring 78 flat buyers to invest in the housing project in Mazgaon. Despite the promises, the project failed to materialize, and the investors were cheated out of ₹35.7 crore. The father-son duo was arrested from their luxurious apartment in Gamdevi and produced before a special MPID court, where they were remanded to police custody. The case was initiated 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 the Harbour Heights project. The developers assured them of 18,181 square feet of carpet area at a rate of ₹28,875 per square foot, leading to a total investment of ₹52.50 crore. Mahesh and Purushottam Mirani together invested ₹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 the agreed two years. In April 2019, a cancellation agreement was signed, under which the accused agreed to return ₹35.71 crore and issued cheques that bounced due to insufficient funds. Apart from the Mirani brothers, 77 others who had booked flats in the failed housing project of three towers, each with 25 stories, 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 towards justice for the numerous victims who were cheated by the developers. The EOW's action sends a strong message to other fraudulent real estate developers and reassures investors that their investments are being protected by law enforcement agencies. The real estate sector in Mumbai is a crucial part of the city's economy, and such fraudulent activities can have a detrimental impact on investor confidence. The EOW's proactive approach in this case is expected to deter similar fraudulent practices and restore trust in the real estate market.

Frequently Asked Questions

What is the total amount of fraud involved in the Harbour Heights project? A: The total amount of fraud involved in the Harbour Heights project is ₹35.71 crore. Q: Who are 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). Q: Where is the Harbour Heights project located? A: The Harbour Heights project is located in Mazgaon, South Mumbai. Q: How many investors were cheated in this real estate fraud? A: A total of 78 flat buyers were cheated in this real estate fraud. Q: What actions did the EOW take after the complaint was filed? A: After the complaint was filed, the EOW registered a criminal case, arrested the developers, and produced them before a special MPID court, where they were remanded to police custody.

Answer not available

Tags:

Related News Articles

Real Estate Mumbai

Tragedy in Mumbai: JCB Operator Still Missing After 17 Days, CM Visits Site

A 38-year-old JCB operator remains untraceable after 17 days of being buried under debris during tunnel shaft excavation work for the Surya Water Supply Project in Vasai, Mumbai.

June 14, 2024

Read Article

real estate news

Sonakshi Sinha's Bittersweet Goodbye: Selling Her First Mumbai Home for a New Beginning

Bollywood actor Sonakshi Sinha is letting go of her first home in Mumbai, a property filled with memories, to start a new chapter with her husband Zaheer Iqbal.

August 25, 2024

Read Article

Real Estate Mumbai

Mumbai, Delhi Among Top APAC Markets for Prime Residential Price Growth

Mumbai has seen an impressive 11.5% YoY increase in luxury property prices in Q3 2024, placing it among the top 14 most expensive APAC prime residential markets. Delhi also ranks high, showcasing robust growth in the luxury real estate sector.

November 22, 2024

Read Article

Real Estate Maharashtra

Pune's Real Estate Market Thrives as Metro Phase 2 Development Gains Momentum

The expansion of Pune's Metro Phase 2 is revolutionizing the city's real estate sector, particularly in areas like Kharadi, Viman Nagar, and other peripheral regions. Property values are surging, and the market is witnessing a significant influx of invest

November 23, 2024

Read Article

Real Estate

WeWork India Files for IPO, Plans to Sell 4.37 Crore Shares

Majority-owned by Embassy Group, one of India's leading real estate developers, WeWork India is leveraging its association with WeWork Global to make a significant market entry. The company has filed for an Initial Public Offering (IPO) and plans to offer

February 2, 2025

Read Article

Real Estate Maharashtra

Maharashtra Government Invites Developers to Build on MSRTC Land and Upgrade Depots

The Maharashtra government has announced an open invitation for real estate developers to participate in the development of 3,360 acres of land owned by the Maharashtra State Road Transport Corporation (MSRTC). The initiative aims to modernize MSRTC depot

February 14, 2025

Read Article