Real Estate Fraud – Mumbai Developers Booked in ₹5 Crore SRA Investment Scam
Real Estate Fraud – A Mumbai-based real estate developer has accused two company directors of cheating him out of more than ₹5 crore by promising returns from a slum rehabilitation project in Malad. The case, initially registered at Kasturba Marg Police Station, has now been handed over to the Mumbai Police Economic Offences Wing due to the scale and seriousness of the alleged financial fraud.
Allegations Against Company Directors
The accused have been named as Mansukh Shah and his son Akash Shah, both directors of Shah Housecon Private Limited. According to investigators, early findings suggest the duo may have used similar methods to enter into questionable agreements with other builders in the construction sector, allegedly extracting substantial sums under the guise of redevelopment investments.
Officials said the broader financial implications and the possibility of multiple victims prompted the transfer of the case to the Economic Offences Wing for a comprehensive probe.
How the Investment Deal Took Shape
The complaint was filed by Nilesh Narendra Raghani, a Kandivali resident and real estate developer. Raghani operates Classic Treasure Private Limited along with his business associate Jigar Desai. The firm is engaged in Slum Rehabilitation Authority projects and other redevelopment assignments.
According to the FIR, Raghani was introduced to the Shah family through a mutual contact in March last year. During their meetings, the accused reportedly claimed they were undertaking a redevelopment project for Khothodongri SRA Society on Rani Sati Marg in Malad. They allegedly presented documents and project details to demonstrate the viability of the venture and invited Raghani’s firm to invest.
Terms of the Agreement
As per the agreement cited in the complaint, the redevelopment was to be carried out on a plot measuring around 5,600 square metres. Raghani’s company agreed to finance the entire construction cost. In return, the Shah-led firm was expected to secure all necessary permissions and facilitate the relocation of eligible slum residents.
In exchange for funding the construction, Classic Treasure Private Limited was to receive a predetermined sale component area from the completed project, forming the basis of its expected returns.
Between May and July 2025, Raghani transferred approximately ₹5.15 crore to the accused, believing that the project would proceed as outlined. However, three months after signing the agreement, he alleged that no meaningful progress had been made in vacating existing structures or clarifying the project’s legal status.
Independent Inquiry Raises Red Flags
Growing suspicious, Raghani initiated his own verification of the land and project details. During this inquiry, he allegedly discovered that the ownership of the plot was not with the accused’s company but with a charitable trust.
The complaint further claims that several individuals listed as occupants on the property were not legitimate residents. Instead, temporary structures were allegedly created with the assistance of local individuals, and rent was being collected from those occupying them.
Investigators are now examining these claims to determine whether fabricated occupancy records were used to strengthen the credibility of the redevelopment proposal.
Wider Financial Impact Under Scrutiny
Police sources indicated that preliminary findings suggest the accused may have entered into similar arrangements with other developers. Authorities suspect that nearly ₹14 crore could have been collected through comparable agreements.
These allegations are currently being verified as part of the ongoing financial fraud investigation.
Threat Allegations and Legal Action
According to the complaint, when Raghani sought a refund of his investment after uncovering discrepancies, he was allegedly threatened. He claimed the accused warned him that he would be removed from the project and issued threats to his life.
Following these developments, Raghani approached the office of the Deputy Commissioner of Police and submitted a formal complaint. Based on his statement and supporting documents, an FIR was registered against Mansukh Shah and Akash Shah.
The Economic Offences Wing has begun a detailed inquiry into the case. Officials said summons are expected to be issued to the accused for questioning as investigators gather financial records and project documents to establish the sequence of events.
Authorities have stated that further action will depend on the outcome of the ongoing probe.