Mumbai Real Estate Scam: Realtor and Son Booked for Defrauding 18 Investors of Rs 31.26 Crore

The Andheri police in Mumbai have booked two directors of a real estate firm for allegedly defrauding 18 investors to the tune of Rs 31.26 crore on the pretext of annual interest returns of 18 percent. The accused, identified as Jaykumar Gupta and his son Suyash Gupta, are directors of Ranbir Real Estate and Development LLP.

The investigation against the accused was transferred to the Economic Offences Wing (EOW) due to the swindled amount exceeding Rs 10 crore, according to senior inspector Umesh Machinder of the Andheri police station. The suspects are alleged to have used the money to invest in a redevelopment project in Jogeshwari.

The alleged scam came to light following a complaint from an Andheri-based pharma businessman, Mahesh Doshi, 71, who operates a medicine manufacturing factory in Gujarat’s Vapi. In 2021, Doshi was seeking an investment opportunity and was introduced to the suspects through one of his acquaintances, Chirag Shah. The two men pitched an ongoing redevelopment project by Ranbir Real Estate and Development LLP located in Jogeshwari (East).

Doshi reported that he, along with his family members, met with Jaykumar Gupta and Suyash at Shah’s office in Andheri (West) on March 19, 2021. The Guptas claimed that they have been in the real estate and transport businesses for the past two decades and were both directors at Ranbir Real Estate and Developers LLP. They allegedly told Doshi that their partnership was redeveloping a piece of land in Majas village along Meghwadi Sarvodaya Nagar Road, Jogeshwari, and that they required money for the project. They promised that three buildings would be constructed, with one building containing 215 flats and six shops, which would be built by the landowner. The Guptas had the right to sell the flats in the two other buildings, the police said.

Jayakumar and Suyash Gupta offered Doshi an investment opportunity in the project, promising an annual interest rate of 18 percent on the investment until the principal amount is returned. They stated that interest payments would be made every three months. Between April 2021 and May 2023, Doshi and his family members invested Rs 8.26 crore. While the Guptas initially paid the promised interest quarterly from 2021 until September 30, 2024, they subsequently ceased payments and did not return the principal investment.

Doshi further claimed that the actual landlord had transferred possession of the building to the Guptas, who completed 95 percent of the construction of two buildings and sold several flats without returning the investors’ money. Upon further investigation, the complainant discovered that there were additional investors who had also been promised the same interest rate but had not received their funds back. In total, 18 investors fell victim to the scheme, with losses amounting to approximately Rs 31.26 crore, according to police reports.

The police are now investigating the extent of the fraud and the specific roles of the accused in the scheme. They are also working to trace the funds and recover the losses for the victims. This case highlights the importance of due diligence and caution when considering investment opportunities, especially those promising unusually high returns.