Mumbai Police File FIR Against Real Estate Developers for Unauthorized Sale of ULC Flats
The Navghar Police have registered an FIR against Gurumauli Developers' partners for allegedly selling government-designated flats under the Urban Land Ceiling (ULC) regulation without informing the housing society, causing a financial loss exceeding Rs 5 crore.
Real EstateUlc FlatsFirDevelopersMumbaiReal EstateAug 15, 2025
The case was filed based on a complaint by 78-year-old Nandkumar Pawaskar, a resident of Mulund Kavita Kiran Society on P. Gujar Road, Mulund East. In 2004, Pawaskar and 25 other individuals formed a proposed housing cooperative society named Shri Omkar Grihnirman Sahakari Society with three key promoters: Yashwant Shengal, Bhaskar Naik, and the late Chimaji Lohkare.
They entered into a development agreement with Namdev Mhatre, the owner of a 1,550 sq. metre plot in Nane Pada, Mulund East. In 2010, Gurumauli Developers were appointed as the contractors for the project. That same year, a registered development agreement was signed. As the land fell under ULC regulations, it was mandatory for the landowner to surrender certain flats to the government.
Gurumauli Developers had agreed to construct nine floors, including eight flats with a total carpet area of 3,497 sq. ft. to be handed over under ULC rules. Society members permitted the developers to construct and sell additional flats using increased Floor Space Index (FSI) at their own cost. In return, Raje and Kudalkar promised that the members would receive increased carpet area due to the enhanced FSI. A supplementary agreement was signed to formalize this.
By 2015, the government directed the society to surrender five flats measuring 421 sq. ft. each instead of eight, through a formal letter addressed to promoter Yashwant Shengal. The society provided a written assurance to the Collector’s office confirming their willingness to comply. However, the 2015 agreement regarding ULC flats was signed solely by the promoters, landowner Mhatre, and the developers. The remaining 23 members of the proposed society did not sign it and later claimed it was not binding upon them. Records also show that on May 13, 2015, Mhatre and Gurumauli Developers entered into an MoU regarding two flats—just two days before a tri-party agreement dated May 15, 2015, was executed for the same.
In a letter dated February 14, 2023, the ULC department informed the society that it could acquire ownership of the five designated flats upon payment of Rs 82.49 lakh. The society cleared the amount, including late fees, on December 30, 2023, through RBI bank challan and subsequently received official confirmation of area release.
Based on this, the developers applied for and obtained an Occupancy Certificate (OC) from the BMC. Despite this, between March 26 and May 24, 2024, developers Raje and Kudalkar allegedly sold all five ULC-designated flats—numbered 903, 904, 1003, 1004, and 1103—without informing the society or its members.
These flats had already been paid for by the society and were legally designated under ULC compliance. The FIR alleges that the developers colluded to misappropriate the flats and committed criminal breach of trust, cheating the society of over Rs 5 crore.
Police Registered FIR Under Sections 420 and 34 IPC
Based on the complaint, the Navghar Police have registered an FIR under Sections 420 (cheating) and 34 (common intention) of the Indian Penal Code. An investigation is underway.
Frequently Asked Questions
What is the Urban Land Ceiling (ULC) regulation?
The Urban Land Ceiling (ULC) regulation is a law in India that restricts the amount of urban land that an individual or entity can own. It requires landowners to surrender a portion of their land to the government for public use, such as housing for the underprivileged.
Who are the developers involved in this case?
The developers involved in this case are Gurumauli Developers, specifically their partners Jagdish Shashikumar Raje and Dilip Prabhakar Kudalkar.
How much financial loss did the society suffer?
The society suffered a financial loss exceeding Rs 5 crore due to the unauthorized sale of the government-designated flats.
What is the Occupancy Certificate (OC) and why is it important?
An Occupancy Certificate (OC) is a document issued by the local municipal authority, certifying that a building is fit for occupation. It is important as it ensures that the construction has been completed according to the approved plans and meets all safety and regulatory standards.
Under which sections of the Indian Penal Code (IPC) was the FIR registered?
The FIR was registered under Sections 420 (cheating) and 34 (common intention) of the Indian Penal Code.
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