Mumbai Real Estate Scandal: ₹100-Crore Fraud Rocks Wadala Housing Project
The Economic Offences Wing (EOW) in Mumbai has launched an investigation into a massive housing fraud involving the 'Sky 31' project in Wadala. Developers are accused of misappropriating ₹100 crore from homebuyers, leaving many in the lurch.
MumbaiReal EstateFraudSky 31Economic Offences WingReal Estate MumbaiNov 06, 2025
The First Information Report (FIR) was filed under Sections 420 (cheating), 406 (criminal breach of trust), and 34 (common intention) of the Indian Penal Code. The preliminary inquiry revealed systemic irregularities in the utilization of funds and documentation.
The investigation began after a formal complaint by Anil Mohanlal Dron, a 62-year-old chartered accountant from Kandivali (West). Dron alleged that he and dozens of other homebuyers were deceived by the project’s promoters—Subbaraman Anand Vilayanur, Uma Subbaraman, and the firm B.P. Ganger Constructions Pvt. Ltd.—who took substantial payments but failed to deliver the promised homes.
Funds Diverted, Promises Broken
According to the FIR, the alleged fraud spanned from 2018 to the present. Investigators believe the accused, acting in concert, collected money from at least 102 buyers and then diverted a significant portion of the funds to personal accounts and associated companies. Instead of channeling the proceeds toward construction, as stipulated in buyer agreements, the developers allegedly used the funds for unrelated business activities and personal gain.
“The buyers were led to believe that construction was proceeding on schedule,” an EOW officer said, requesting anonymity as the probe is ongoing. “In reality, very little progress was made, and a large chunk of the money went elsewhere.”
Flats Sold Twice, Buyers Left in Limbo
Perhaps the most startling revelation came when investigators discovered that some flats in the Sky 31 project were sold to multiple buyers. Payments were collected separately from each party, effectively doubling the developers’ earnings while leaving both buyers defrauded. This practice, though rare, has surfaced before in Mumbai’s high-stakes real estate market, where buyers often pay in advance for under-construction units. Legal experts say that overlapping sales are a telltale sign of deliberate intent to defraud rather than simple mismanagement.
The EOW’s Banking Unit–3, Cell 11, is currently reviewing transaction records, sale agreements, and digital communications to determine how widespread the double-selling practice may have been.
A Familiar Pattern in Mumbai’s Real Estate
For now, the accused developers face charges of cheating and criminal breach of trust, and the EOW is expected to summon them for questioning. For the 102 buyers still waiting for their promised homes, the case represents yet another reminder of how easily trust—and savings—can vanish in Mumbai’s volatile housing market.
Frequently Asked Questions
What is the 'Sky 31' project?
The 'Sky 31' project is a residential housing project in Wadala (West), Mumbai, where developers are accused of misappropriating ₹100 crore from homebuyers.
Who filed the complaint against the developers?
A 62-year-old chartered accountant named Anil Mohanlal Dron from Kandivali (West) filed the complaint against the developers.
What charges are the developers facing?
The developers are facing charges of cheating and criminal breach of trust under Sections 420, 406, and 34 of the Indian Penal Code.
How many buyers are affected by this fraud?
At least 102 buyers are affected by this fraud, with some flats being sold to multiple buyers.
What is the role of the Economic Offences Wing (EOW) in this case?
The EOW is investigating the systemic irregularities in fund utilization and documentation, and they are expected to summon the accused developers for questioning.
Related News Articles
Bureaucratic Shuffles and Political Power Plays: What's in Store for UP?
Manoj Saunik, former Chief Secretary of Maharashtra, has been appointed as Chairman of Maharashtra Real Estate Regulatory Authority. Meanwhile, BJP gears up for elections in Haryana without an alliance.
Govt May Offer Relief on LTCG Tax on Real Estate to Boost Demand
The government may address concerns over the Budget proposal to revise the taxation of long-term capital gains (LTCG) from real estate transactions, offering some relief to boost demand.
Luxury Living: Billionaire Couple Michelle and Yohan Poonawalla's 30,000 sq ft Mansion in Mumbai
Mumbai's real estate market continues to soar as affluent industrialists and billionaires invest in high-end properties across the city.
CIDCO Must Register as Promoter with MahaRERA for Land Plot Sales
Mumbai: In a recent ruling, the Maharashtra Real Estate Appellate Tribunal (MREAT) has directed CIDCO to register itself as a promoter for its land plot sales.
Pune News: MahaRERA Conciliation Forums Resolve Over 1,000 Homebuyer Complaints
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has successfully resolved over 1,000 disputes between homebuyers and developers, bringing much-needed relief and transparency to the real estate sector in Pune and across the state.
Techie's Relocation Dilemma: Which City is the Best for Tech Professionals?
Pune and Hyderabad have similar lifestyles, but Pune offers better opportunities for techie professionals. The debate over which city is the best for tech relocation continues to rage on social media.