Mumbai EOW books construction firm director, son for cheating bizman of Rs 5.15cr in slum redevelopment project

MUMBAI: A director of a construction firm and his son have been booked by the Economic Offences Wing (EOW) for inducing a businessman to invest Rs 5.15 crores promising a high returns through MOU by falsely claiming development rights and failed to fulfil contractual obligations, hid the issue of land disputes, demanded additional funds and later issued a termination notice indicating dishonest intent.

The Economic Offences Wing (EOW), Mumbai, is probing an alleged cheating case involving a slum redevelopment project at Rani Sati Marg, Malad (East), after a real estate director Nilesh Raghani accused the promoters of Shah Housecon Pvt. Ltd. of defrauding his company through false promises and misleading agreements.


According to the FIR registered with the Kasturba Marg police, Raghani, director and 99 percent shareholder of Classic Treasure Pvt. Ltd., alleged that he was introduced to directors Mansukh H. Shah and his son Akash Mansukh Shah in March 2025 regarding 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 development of a 5,600 sq metre plot with a proposed 4.5 lakh sq ft sale component.

Raghani claimed his company paid a total of Rs. 5.15 crore in instalments as per the MoU schedule. However, he later discovered that Shah Housecon allegedly failed to carry out essential redevelopment work such as eviction of occupants, title creation, and coordination with stakeholders. He further alleged that development rights over that particular land were falsely represented, as the ownership was reportedly with a charitable trust.

Raghani also stated that the accused had entered into parallel agreements with other developers and allegedly demanded an additional Rs. 25 crore, along with threats when the demand was refused. Raghani has accused the directors of misusing funds, concealing disputes related to the land, and issuing termination notices after receiving payments.

The complaint further alleges that many of the purported slum dwellers shown on the 5,600 sq metre plot were not recognised original occupants under Slum Rehabilitation Authority (SRA) records. It is also alleged that certain encroachments were created with the help of a local resident, from whom rent of Rs3,000 to Rs4,000 per month was being collected.Additionally, some slum dwellers have allegedly filed a writ petition in the High Court against Shah Housecon for failing to provide rent or alternate accommodation.

The FIR also alleges that Shah Housecon entered into separate redevelopment agreements for the same plot with other developers, including Jha Buildcon LLP (Rs6.93 crore), B-Right Real Estate Ventures LLP (Rs14 crore), and Salasar Land Developers, collecting substantial sums from them as well.