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The Economic Offences Wing (EOW) of Mumbai Police has registered a case against two directors of Shah Housecon Pvt Ltd after a developer alleged he was cheated of around INR 5.15 crore in a slum rehabilitation project in Malad. The complainant claimed he was persuaded to fund the entire construction cost of an SRA scheme with the assurance that statutory approvals and tenant rehabilitation would be managed by the accused. Later, he found that the land belonged to a charitable trust and not the company, leading to a police complaint.
Mumbai Police's Economic Offences Wing has booked two directors of Shah Housecon Pvt Ltd in connection with an alleged cheating case involving an SRA redevelopment project in Malad East. Advertisement
The complaint was filed by developer Nilesh Narendra Raghani, who stated that he was introduced to the accused in the past year and was shown a proposal for redevelopment of the Khothodongri SRA Society located on Rani Sati Marg. The accused reportedly represented that they had rights over the project and required funding support for construction.
As per the understanding between the parties, Raghani's firm was to bear the entire construction cost of the rehabilitation building. In return, the accused were to obtain all necessary permissions from the Slum Rehabilitation Authority, complete the process of shifting eligible slum dwellers, and hand over the agreed sale component area to the investor after completion of the project.
Between May and July last year, Raghani transferred a total of INR 5.15 crore to the company in multiple tranches. However, even after several months, there was no visible progress on the ground. Tenant relocation did not begin, and required clearances were not secured.
During follow-up inquiries, the complainant allegedly discovered that the land on which the project was proposed was owned by a charitable trust and not by Shah Housecon. He claimed that this fact had not been disclosed to him at the time of entering into the agreement.
Following his complaint, a case was initially registered at Kasturba Marg police station under relevant sections related to cheating and criminal breach of trust. The matter was later transferred to the Economic Offences Wing for a detailed probe into the financial transactions and representations made in the deal.
The investigation is expected to examine the agreement documents, fund transfers, project approvals, and the ownership status of the land parcel. Police officials are also likely to verify whether similar complaints exist against the accused in other redevelopment proposals.
SRA projects in Mumbai often involve multiple stakeholders, including landowners, societies, developers, and authorities. Disputes over title, permissions, and financial arrangements have led to several legal and criminal proceedings in the past, especially in cases where funding is raised before statutory clearances are secured.
Source PTI
FAQ
1. What is the case registered by Mumbai's Economic Offences Wing (EOW)?
The Economic Offences Wing of Mumbai Police has registered a case against two directors of Shah Housecon Pvt Ltd over an alleged cheating amounting to around INR 5.15 crore. The complaint relates to a Slum Rehabilitation Authority (SRA) redevelopment project proposed in Malad East, where the complainant claims he was misled into funding the construction.
2. Who filed the complaint and what are the allegations?
The complaint was filed by developer Nilesh Narendra Raghani, who alleged that he was persuaded to finance the entire construction cost of a rehabilitation building for the Khothodongri SRA Society on Rani Sati Marg. He claimed the accused assured him they would secure all necessary permissions, manage tenant rehabilitation, and hand over the agreed sale component area upon completion.
3. How much money was involved in the transaction?
Between May and July last year, the complainant transferred approximately INR 5.15 crore to Shah Housecon Pvt Ltd in multiple instalments. According to the complaint, despite the payments, there was no visible progress on construction, tenant relocation, or statutory approvals.
4. What issue was discovered regarding land ownership?
During follow-up inquiries, the complainant allegedly found that the land proposed for redevelopment belonged to a charitable trust and not to Shah Housecon Pvt Ltd. He claimed this ownership detail was not disclosed at the time of entering into the agreement, which prompted him to approach the police.
5. How did the investigation progress?
The case was initially registered at Kasturba Marg police station under sections related to cheating and criminal breach of trust. It was later transferred to the Economic Offences Wing for a detailed investigation into financial transactions, agreement documents, project approvals, and the ownership status of the land.
6. Why are SRA projects often subject to disputes?
SRA projects in Mumbai typically involve multiple stakeholders, including landowners, housing societies, developers, financiers, and regulatory authorities. Disputes can arise over land title, permissions, funding arrangements, and project rights. In several past instances, legal and criminal proceedings have followed where investments were made before statutory clearances or ownership confirmations were fully secured.
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