Bombay high court directs developer to withdraw anticipatory bail plea, seek relief from sessions court

MUMBAI: The Bombay High Court on Monday pulled up a developer for approaching it while his anticipatory bail application was still pending before the Dindoshi Sessions Court, observing that he must first seek relief from the appropriate forum.

The court directed the accused to immediately withdraw his anticipatory bail application from the High Court and pursue remedies before the Sessions Court.



Justice N.R. Borkar was hearing the anticipatory bail plea of Housecon developer Mansukh Shah, who has been booked along with his son Akash Shah by the Economic Offences Wing (EOW) for allegedly inducing a businessman to invest Rs 5.15 crore in a redevelopment project by promising high returns through a memorandum of understanding (MoU) and falsely claiming development rights over a Malad property, before allegedly failing to fulfil contractual obligations.


Last week, Mansukh and Akash Shah had moved the Sessions Court for anticipatory bail and the matter was scheduled for hearing on Tuesday. However, on Monday, the duo approached the High Court seeking protection from arrest.


The complainant investor, Nilesh Raghani, through his advocates Abad Ponda and Suvarna Vast, strongly opposed the plea, arguing that granting relief when their bail application was already pending before the Sessions Court would set a wrong precedent. Following the court’s observations, the accused ultimately withdrew their application.


The case pertains to a cheating FIR initially registered at Kasturba Marg Police Station against Shah Housecon, which was later transferred to the EOW for further investigation.


According to the FIR, Raghani, Director of Classic Treasure Pvt. Ltd., stated that he was introduced to Mansukh Shah and his son Akash in March 2025 in connection with an SRA redevelopment project at Khot Dongri Cooperative Housing Society. A term sheet dated May 6, 2025, followed by an MoU on May 17, 2025, and a supplementary MoU on July 16, 2025, were executed for the development of a 5,600 sq metre plot with a proposed sale component of 4.5 lakh sq ft.


Raghani alleged that his company paid a total of Rs 5.15 crore in instalments as per the MoU schedule. He later claimed that Shah Housecon failed to undertake key redevelopment activities such as eviction of occupants, title creation and coordination with stakeholders. He further alleged that development rights over the land were falsely represented, as the ownership was reportedly vested in a charitable trust.


The complainant also alleged that the accused entered into parallel agreements with other developers for the same plot, collected substantial amounts from them, and later demanded an additional Rs 25 crore. When the demand was refused, threats were allegedly issued and termination notices were served.