Mumbai Police Register ₹5.15-Crore Cheating Case Against Shah Housecon Directors in Malad Redevelopment

The Mumbai police have registered a cheating case against Mansukh H. Shah and Akash Mansukh Shah, directors of Shah Housecon Pvt. Ltd., for allegedly accepting ₹5.15 crore from a developer on the basis of false assurances and misusing the funds for personal gain. The case has been filed following a complaint by Nilesh Narendra Raghani, 47, director of Klassic Treasure Pvt. Ltd.

According to the FIR, Raghani, a resident of Thakur Village in Kandivali (East) and a real estate developer, entered into a redevelopment arrangement with Shah Housecon Pvt. Ltd. in March 2025 through a mutual contact, Jagdish Bhanushali.

The Shah father-son duo introduced Raghani to their ongoing redevelopment project at Khot Dongri Co-operative Housing Society, located on Rani Sati Marg, Malad (East). As per the proposed arrangement, Raghani’s company, Klassic Treasure Pvt. Ltd., was to undertake construction on a 5,600 sq metre sale plot with a total saleable area of 4.5 lakh sq ft.

Of this, 3.4 lakh sq ft was to be allocated to Klassic Treasure, while 1.1 lakh sq ft and ₹100 crore were to be given to Shah Housecon Pvt. Ltd. Construction expenses were to be borne by Raghani’s company, while Shah Housecon was responsible for securing approvals and vacating tenants.

A term sheet was signed on May 6, 2025, followed by a Memorandum of Understanding (MoU) on May 17, 2025, and a supplementary MoU on July 16, 2025. As per the agreements, two acquired plots were to be handed over unconditionally to Klassic Treasure for development. Subsequently, Raghani’s company transferred ₹5.15 crore to Shah Housecon. However, the complainant has alleged that Shah Housecon failed to fulfil the agreed conditions.

The FIR states that necessary redevelopment activities were not undertaken, and that certain title rights over the project land were not with Shah Housecon but with a charitable trust. Despite this, the supplementary MoU allegedly misrepresented that the company held development rights over the CTS-numbered plots.

The complaint further alleges that many of the purported slum dwellers shown on the 5,600 sq metre plot were not recognised original occupants under Slum Rehabilitation Authority (SRA) records. It is also alleged that certain encroachments were created with the help of a local resident, from whom rent of ₹3,000 to ₹4,000 per month was being collected.

Additionally, some slum dwellers have allegedly filed a writ petition in the High Court against Shah Housecon for failing to provide rent or alternate accommodation.

The FIR also alleges that Shah Housecon entered into separate redevelopment agreements for the same plot with other developers, including Jha Buildcon LLP (₹6.93 crore), B-Right Real Estate Ventures LLP (₹14 crore), and Salasar Land Developers, collecting substantial sums from them as well.

Raghani has further alleged that during meetings to resolve the dispute, the Shah directors demanded an additional ₹25 crore and sought an advance of ₹2 crore. When he refused, they allegedly threatened to remove him from the project and issued death threats.

On October 9, 2025, Shah Housecon, through its advocate Usha Agarwal, sent a termination notice cancelling the term sheet and MoU.

Based on the complaint, Kasturba Sub-police station has registered a case under Sections 3(5) and 318(4) of the Bharatiya Nyaya Sanhita (BNS). The Economic Offences Wing has begun further investigation.