Mumbai Police EOW Cracks Down: Radius Sumer Developers Promoters Arrested for ₹35.7 Crore Fraud
The Economic Offences Wing (EOW) of the Mumbai Police has taken action against prominent real estate developers Ramesh Shah and his son Rahul for a significant fraud involving the failed Harbour Heights housing project in South Mumbai.
Mumbai PoliceReal Estate FraudEowRadius Sumer DevelopersHarbour HeightsReal Estate MumbaiMay 17, 2025
The case was first registered in November last year against Radius Sumer Developers Pvt. Ltd. and real estate developers Sanjay Chhabria (51) and another individual. The primary complainants, Mahesh Mirani (67) and his Hong Kong-based brother Purushottam Mirani, invested a total of ₹21.94 crore in the project through their Metro Investment Partnership firm. The accused promised 18,181 square feet of carpet area at a rate of ₹28,875 per square foot, totaling ₹52.50 crore.
However, no construction work was undertaken within the agreed two-year period. In April 2019, a cancellation agreement was signed, under which the accused agreed to return ₹35.71 crore to the Mirani brothers, issuing cheques that subsequently bounced due to insufficient funds. Apart from the Mirani brothers, 77 other individuals who had booked flats in the project were also duped.
The father-son duo, Ramesh and Rahul Shah, were arrested from their plush apartment in Gamdevi and produced before a special MPID court, where they were remanded to police custody. The EOW has been investigating the case thoroughly, and the arrests are a significant step towards justice for the cheated investors.
The Harbour Heights project was marketed as a prime investment opportunity, particularly for NRIs looking to invest in Indian real estate. The failure to deliver on the promises has left many investors in a lurch, with their savings and investments at risk. The EOW's swift action in this case is expected to send a strong message to other fraudulent developers and provide some relief to the victims.
The case highlights the importance of due diligence and cautious investment, especially in the real estate sector. Investors are advised to thoroughly verify the credentials and past performance of developers before committing their funds. The Mumbai Police and EOW continue to investigate the case and are committed to bringing all those involved to justice.
Frequently Asked Questions
Who were the developers arrested by the EOW?
The Economic Offences Wing (EOW) of the Mumbai Police arrested Ramesh Shah (65) and his son Rahul (40) for a real estate fraud involving the Harbour Heights project in South Mumbai.
How much money was allegedly defrauded from the investors?
The developers allegedly defrauded investors of ₹35.7 crore in the failed Harbour Heights housing project.
What was the nature of the investment promised to the Mirani brothers?
The Mirani brothers were promised 18,181 square feet of carpet area at a rate of ₹28,875 per square foot, totaling ₹52.50 crore, in the Harbour Heights project.
When was the cancellation agreement signed, and what happened to the cheques issued?
The cancellation agreement was signed in April 2019, and the accused agreed to return ₹35.71 crore to the Mirani brothers, but the cheques issued bounced due to insufficient funds.
How many other investors were affected by this fraud?
Apart from the Mirani brothers, 77 other individuals who had booked flats in the project were also duped.
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