Mumbai: A Slum Rehabilitation Authority (SRA) redevelopment project in Malad East has come under regulatory scrutiny following allegations of financial irregularities, fund diversion, money laundering, and cheating involving over ₹275 crore. Complaints have been filed before the Enforcement Directorate (ED) and the Securities and Exchange Board of India (SEBI), naming multiple entities and individuals linked to the Khot Dongri SRA scheme.
Shah Housecon Private Limited (SHPL), promoted by Mansukh Shah, is identified as the developer of the project on Rani Sati Marg, spread across approximately 5,600 square metres. The complaint also names B Right Real Estate Limited, along with its promoters and directors, among the entities involved.
According to the complaint dated April 7, 2026, SHPL allegedly entered into multiple Memorandums of Understanding (MoUs) and development agreements with various parties over several years. These agreements were reportedly executed despite existing mortgages, encumbrances, prior contractual obligations, and ongoing disputes, raising concerns about overlapping rights and financial claims on the same project.
Public SRA records list Khot Dongri CHS Limited as the housing society under redevelopment, with SHPL as the developer and architect Vishwas Satodiya associated with the project. The scheme is registered under Regulation 33(10), which governs slum rehabilitation projects.
The complaint further alleges that SHPL raised around ₹104 crore from financial institutions, including Indiabulls and ARCIL, by mortgaging the project’s sale component. Despite this, the company is accused of continuing to raise funds from other investors and developers, creating multiple financial exposures linked to a single asset.
It is also alleged that between 2019 and 2024, B Right Group, through B Right Real Estate Limited, engaged in structured financial transactions with SHPL. Funds were reportedly infused under investment arrangements, with a portion allegedly routed back to group-linked entities such as Consultshah Financial Services Private Limited and Skyline Counseling Private Limited.
The matter has also reached law enforcement authorities. In February 2026, Mansukh Shah and Akash Mansukh Shah were accused of defrauding a developer of ₹5.15 crore in connection with the same project. The case, initially registered at Kasturba Marg Police Station, was later transferred to the Economic Offences Wing (EOW).
The complaint claims that project progress has not matched the scale of funds raised. It further alleges that eligible slum residents have not received rehabilitation housing for several years and that rent compensation dues remain unpaid.
The complainant has urged SEBI to conduct a forensic audit, trace fund flows, examine related-party transactions, and take steps to prevent further diversion of funds. The issue, the complaint notes, affects both investors and slum rehabilitation beneficiaries awaiting housing under a statutory scheme.
Additional allegations include lack of clear title, overlapping agreements with multiple parties, and illegal occupation of rehabilitation units by unauthorised individuals. The complainant has also alleged intimidation and monetary coercion.
Advocate Suvarna Vasta opposed the anticipatory bail plea of the accused, which was rejected by the Sessions Court in Dindoshi. The accused had earlier withdrawn a similar plea before the High Court. Sources claim the entities enjoy political backing, with no significant action taken so far despite multiple complaints.