Two men booked for Rs 5 crore cheating in slum redevelopment project

Two directors of a real estate firm have been booked for allegedly cheating a developer of over Rs 5 crore by inducing him to invest in a Slum Rehabilitation Authority (SRA) project in Malad through false representations, police said on Friday. The Kasturba Marg police registered an FIR against Mansukh Shah and his son Akash Mansukh Shah , directors of Shah Housecon Private Limited, and later transferred the investigation to the Economic Offences Wing (EOW) for a detailed financial probe.

According to the complaint filed by real estate developer Nilesh Narendra Raghani , director of Klassic Treasure Pvt Ltd, he was introduced to the accused in March last year. The duo allegedly proposed a partnership for redevelopment of the Khothodongri SRA Society project on Rani Sati Marg in Malad East and persuaded him to invest by presenting attractive project details and assurances.

As per the agreement, construction was to be undertaken on a 5,600 square metre plot , with Raghani’s company bearing the entire construction cost, while Shah Housecon was responsible for securing statutory permissions, vacating slum structures, relocating tenants, and ensuring clear project title. In return, Raghani’s firm was to receive a fixed saleable component from the project.

Trusting these assurances, Raghani transferred Rs 5.15 crore between May and July last year . However, even months after the agreement, the accused allegedly failed to initiate eviction of occupants, obtain necessary approvals, or clear ownership disputes. Raghani later discovered that the land did not belong to the accused’s firm but was owned by a charitable trust , raising serious doubts about the legitimacy of the deal.

The complaint further alleges that the accused had entered into parallel agreements with multiple developers for the same project, collected substantial sums, demanded an additional Rs 25 crore from Raghani, and issued threats when he refused. Some slum dwellers have also reportedly approached the Bombay High Court over non-payment of rent and failure to provide alternative accommodation.

Based on the complaint, a case has been registered for cheating, criminal breach of trust and conspiracy , and the EOW is now scrutinising financial transactions, agreements and fund flows to ascertain the full extent of the alleged fraud, officials said.