Mumbai Police's EOW Cracks Down on Housing Fraud: 2 Cases Uncovered Involving Rs 80 Crore
The Economic Offences Wing (EOW) of the Mumbai police has registered two separate cases of housing fraud, involving 143 flat buyers and nearly Rs 80 crore.
Housing FraudReal EstateMumbai PoliceEowEconomic OffencesReal Estate MumbaiJul 18, 2024
In the first case, Ashit Doshi and Manish Shah of Zeus Housing and Construction, along with other directors of the company, sold four flats at Zeus Residency project in Sion, Antop Hill, to a Mahim resident for Rs 67.50 lakh. They sold flats to 75 buyers in total, collecting Rs 66.80 crore from them between 2013 and 2024. However, the builders failed to complete the construction work within the stipulated time and allegedly misused the buyers’ money for personal gains, defrauding the buyers.
In the second case, Jitendra Bhrahmbhatt alias Jitubhai Borat, director of Sahajanand Enterprises and MNP Associates, has been charged with deceiving 68 flat buyers of Rs 13.05 crore. In May 2006, Bhrahmbhatt collected payments from a 46-year-old businessman from Andheri (West) and 68 other individuals for flats in Prathmesh Phase-4 project in Andheri (West). The builders accepted over 20 per cent of each flat’s total value and issued allotment letters but never registered the agreements. They breached the buyers’ trust by diverting the funds for personal gain, causing financial losses to the buyers.
The EOW has charged the builders and directors of the respective real estate firms with cheating, breach of trust, and violations under the Maharashtra Ownership Flats Act. The police are gathering documents related to the sale of flats in both cases and are also reaching out to banks to obtain details of the accounts used by the builders to allegedly divert funds.
The cases highlight the need for stricter regulations and monitoring of the real estate sector to prevent such instances of fraud and protect the interests of buyers. The Maharashtra government has taken several steps in recent years to regulate the sector, including the implementation of the Real Estate (Regulation and Development) Act, 2016. However, more needs to be done to prevent such cases of fraud and ensure that buyers are safeguarded against unscrupulous builders.
Information
The Economic Offences Wing (EOW) is a specialized agency of the Mumbai police that deals with cases of economic offences, including fraud, cheating, and breach of trust.
Zeus Housing and Construction, Sahajanand Enterprises, and MNP Associates are real estate firms involved in the construction of residential projects in Mumbai.
Frequently Asked Questions
What is the total amount involved in the two cases of housing fraud?
Rs 80 crore
How many flat buyers were allegedly duped in the two cases?
143
What is the name of the agency that registered the cases of housing fraud?
Economic Offences Wing (EOW) of the Mumbai police
What is the name of the act that the builders have been charged with violating?
Maharashtra Ownership Flats Act
What is the purpose of the Real Estate (Regulation and Development) Act, 2016?
To regulate the real estate sector and protect the interests of buyers
Related News Articles
Unlocking Opportunities in the Real Estate Insurance Market: Trends, Insights, and Projections
Discover the latest trends, challenges, and opportunities in the real estate insurance market, featuring key players, regional analysis, and market segmentation.
Pune Real Estate Market Sees 50% Jump in Registered Transactions, Average Home Price Reaches Record High
The number of real estate transactions in Pune has increased significantly, with registered transactions surging by 50% in the April-June 2024 quarter.
Haryana and Jammu & Kashmir Assembly Election Dates Announced by EC; Results to be Declared on October 4
The Election Commission of India has announced the dates for the Haryana and Jammu & Kashmir assembly elections. The polls will be held in a single phase on October 21, and the results will be declared on October 4.
Century Textiles Acquires 10-Acre Land in Mumbai for ₹1100 Crore, Expects ₹14,000 Crore in Revenue
Century Textiles plans to develop the land through its real estate subsidiary Birla Estates, expecting ₹14,000 crore in revenue from the project.
Virgo Daily Horoscope for September 14, 2024: A Temporary Setback in Assets and Real Estate Deals
Be cautious with real estate deals today, as a temporary decline in assets may occur. However, this setback will be short-lived.
DLF Q2 Earnings Skyrocket: Net Profit Surges to ₹1381 Crore
DLF, India's leading real estate firm in terms of market capitalization, has reported a remarkable surge in its Q2 net profit, jumping over twofold to ₹1381 crore. The company, primarily engaged in the development and sale of residential and commercial pr