Mumbai News: ₹5.15-Crore Cheating Case Filed Against Shah Housecon Directors In Malad Redevelopment Project

The Mumbai police have registered a cheating case against Mansukh H. Shah and Akash Mansukh Shah, directors of Shah Housecon Pvt. Ltd., for allegedly accepting Rs5.15 crore from a developer on the basis of false assurances and misusing the funds for personal gain. The case has been filed following a complaint by Nilesh Narendra Raghani, 47, director of Klassic Treasure Pvt. Ltd.

Redevelopment Deal Details

According to the FIR, Raghani, a resident of Thakur Village in Kandivali (East) and a real estate developer, entered into a redevelopment arrangement with Shah Housecon Pvt. Ltd. in March 2025 through a mutual contact, Jagdish Bhanushali.

Project Introduction

The Shah father-son duo introduced Raghani to their ongoing redevelopment project at Khot Dongri Co-operative Housing Society, located on Rani Sati Marg, Malad (East). As per the proposed arrangement, Raghani’s company, Klassic Treasure Pvt. Ltd., was to undertake construction on a 5,600 sq metre sale plot with a total saleable area of 4.5 lakh sq ft.

Profit Sharing Formula

Of this, 3.4 lakh sq ft was to be allocated to Klassic Treasure, while 1.1 lakh sq ft and Rs100 crore were to be given to Shah Housecon Pvt. Ltd. Construction expenses were to be borne by Raghani’s company, while Shah Housecon was responsible for securing approvals and vacating tenants.

Agreements And Payments

A term sheet was signed on May 6, 2025, followed by a Memorandum of Understanding (MoU) on May 17, 2025, and a supplementary MoU on July 16, 2025. As per the agreements, two acquired plots were to be handed over unconditionally to Klassic Treasure for development. Subsequently, Raghani’s company transferred Rs5.15 crore to Shah Housecon. However, the complainant has alleged that Shah Housecon failed to fulfil the agreed conditions.

Alleged Misrepresentation

The FIR states that necessary redevelopment activities were not undertaken, and that certain title rights over the project land were not with Shah Housecon but with a charitable trust. Despite this, the supplementary MoU allegedly misrepresented that the company held development rights over the CTS-numbered plots.

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SRA And Encroachment Claims

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.

High Court Petition

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.

Multiple Developer Deals

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.

Threat And Termination

Raghani has further alleged that during meetings to resolve the dispute, the Shah directors demanded an additional Rs25 crore and sought an advance of Rs2 crore. When he refused, they allegedly threatened to remove him from the project and issued death threats.

Case Registered Under BNS

On October 9, 2025, Shah Housecon, through its advocate Usha Agarwal, sent a termination notice cancelling the term sheet and MoU.

Based on the complaint, Kasturba Sub-police station has registered a case under Sections 3(5) and 318(4) of the Bharatiya Nyaya Sanhita (BNS). The Economic Offences Wing has begun further investigation.

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