Mumbai SRA Fraud: Two Directors Booked for Rs 5 Crore Fraud in Malad SRA Project Investment Racket

In a shocking case of financial fraud, a businessman was allegedly cheated of nearly ₹5 crore on the pretext of investment in a Slum Rehabilitation Authority (SRA) redevelopment project at Malad. The case has been registered at Kasturba Marg Police Station against two directors of Shah Housecon Private Limited. The investigation has now been transferred to the Mumbai Police Economic Offences Wing considering the seriousness and wider ramifications of the offence.

The accused have been identified as Mansukh Shah and Akash Mansukh Shah. Preliminary investigations have revealed that the father-son duo allegedly executed similar bogus agreements with other builders in the construction sector and duped them of large sums of money.

The complainant, Nilesh Narendra Raghani, a real estate developer residing at Thakur Village in Kandivali, runs a company named Classic Treasure Private Limited along with his associate Jigar Desai. The firm undertakes SRA and redevelopment projects.

According to the complaint, in March last year, a common acquaintance introduced Raghani to the accused, who claimed that their company was engaged in slum rehabilitation projects. They presented details of the Khothodongri SRA Society redevelopment project located on Rani Sati Marg in Malad and persuaded Raghani to invest in the venture.

As per the agreement, construction was to be carried out on a 5,600-square-metre plot. Raghani’s company was to bear the entire construction cost, while the Shah-led firm was responsible for securing permissions and shifting tenants. In return, Raghani’s company was to receive a fixed sale component area from the project.

Trusting the proposal, Raghani transferred ₹5.15 crore to the accused between May and July 2025. However, even three months after signing the agreement, the accused allegedly failed to vacate the slum structures or clear the project title.

Upon suspecting foul play, Raghani conducted an independent inquiry and discovered that the ownership of the plot did not rest with the accused’s company but with a charitable trust. It also came to light that several individuals shown as occupants on the plot were allegedly not genuine residents. Instead, encroachments were reportedly created with the help of local persons, and rent was being collected from them.

Further inquiries revealed that the accused had allegedly duped other developers through similar fraudulent agreements, siphoning off nearly ₹14 crore.

When Raghani demanded a refund of his investment, the accused allegedly threatened to remove him from the project and issued death threats. Following this, Raghani approached the Deputy Commissioner of Police’s office and lodged a formal complaint.

Based on the complaint, police registered an FIR against Mansukh Shah and Akash Shah. The Economic Offences Wing is now conducting a detailed probe, and summons are likely to be issued to the accused for questioning.