₹17.74 Crore MHADA Flat Scam: EOW Files Chargesheet Against Prabhakar Shetty

Mumbai, March 5: A sensational real estate fraud worth ₹17.74 crore, involving forged government documents, fake MHADA allotment papers and a man posing as an Intelligence Bureau (IB) officer, has been unearthed by the Economic Offences Wing (EOW) of Mumbai Police. The agency has filed a 500-page chargesheet in the case and made the first arrest.

The arrested accused, Prabhakar Shetty (70), was apprehended in December 2025 from Karkala in Udupi district. Police have named him in the chargesheet along with 14 witnesses in connection with the case. Investigators alleged that Shetty collected about ₹20 lakh from the complainant and nearly ₹2 crore from other investors as part of the fraud.

Role of the accused

According to the EOW, Shetty allegedly assisted the prime accused, Rupesh Prabhakar Chaudhary, who is now deceased, in duping investors by promising low-cost flats under housing schemes of the Maharashtra Housing and Area Development Authority.

Investigators said Shetty played a key role in introducing prospective investors to Chaudhary and convincing them that they would receive MHADA flats at nominal prices. During the investigation, the EOW also found several transactions of fraud money in Shetty’s bank accounts, confirming his alleged financial involvement in the racket.

Case registered after investor complaint

The case was initially registered at Dindoshi Police Station on the complaint of Mohammad Aslam Qureshi (45), a businessman who alleged that he and several other investors were cheated of ₹17.74 crore.

According to the complaint, Chaudhary and his associates—including his wife Nikki Chaudhary, Prabhakar Shetty and Roland Karkada—allegedly duped multiple investors between January 2023 and July 2025.

Accused posed as Intelligence Bureau officer

Qureshi told investigators that Chaudhary posed as a senior officer of the Intelligence Bureau and claimed to have strong connections with MHADA and the Mumbai Metropolitan Region Development Authority. Using this false identity, he allegedly promised investors affordable flats under government housing schemes and produced forged MHADA allotment letters, fake GRAS challans and fabricated government documents to gain their trust.

To strengthen his fake persona, Chaudhary allegedly travelled in a red-beacon vehicle, moved around with armed bodyguards and was frequently photographed with IAS officers and senior police officials. Police said he even organised a lavish birthday celebration attended by bureaucrats, police officers and television celebrities from the popular show Taarak Mehta Ka Ooltah Chashmah, further convincing investors about his influence.

Investors promised flats in prime projects

According to the complaint, investors were promised flats in several prime Mumbai projects, including Sugi Parimal in Dadar, Vraj Tiara in Worli, Soham Apartment in Walkeshwar, Green Edge Hill in Powai, Minerva, Rustomjee Crown, Oberoi 360 West and Prestige Jasdan.

The investors were scheduled to complete the property registrations on July 18, 2025, but shortly before that they learned that Chaudhary had died of a heart attack in Nashik.

Questions raised over accused’s death

Qureshi claimed that it was only during Chaudhary’s funeral that he realised the accused had never been associated with the Intelligence Bureau.

He further alleged that Chaudhary maintained close contact with senior police officials, including Chandrakant Khandvi, who was then Nashik DCP, and Vishal Gaikwad, and that they were regularly in touch with him and allegedly helped facilitate his travel to Dubai.

During the probe, investigators also confirmed that Chaudhary had forged MHADA documents using the name of MHADA Vice-President Anil Diggikar, who has clarified that he had no connection with the accused and that the documents in circulation were fabricated.

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Meanwhile, Qureshi has also raised suspicion regarding Chaudhary’s sudden death, pointing to discrepancies in the post-mortem findings and red marks found on the accused’s chest. He has further accused Nikki Chaudhary of withholding investor funds and threatening him with false legal cases.

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