Mumbai Police Book Builder, Directors, Banks And Buyers In Alleged ₹42.96-Crore Chinchpokli Redevelopment Fraud

Mumbai, July 27, 2026: The Mumbai police have registered an FIR against Siddhivinayak Construction Pvt. Ltd., its three directors, nine financial institutions and 13 flat purchasers for allegedly cheating a housing society and its tenants of Rs 42.96 crore in a redevelopment project at Chinchpokli.

Alleged Fraud In Redevelopment

According to the FIR, the accused allegedly sold 33 rehabilitation flats and three reserve (rescue) units that were earmarked for tenants in a redevelopment project, and secured loans worth Rs 37.80 crore against those properties in connivance with financial institutions.

The complaint was filed by Pradeep Shivram Sawant, 55, secretary of Shrimotanka Tenants Co-operative Housing Society on Dattaram Lad Marg, Chinchpokli (East).

Acting on directions from the Bombay High Court, Sawant approached the Mazgaon Metropolitan Magistrate's Court under Section 175(3) of the Bharatiya Nagarik Suraksha Sanhita (BNSS), seeking registration of an FIR.

The court subsequently directed the Kalachowki police to register the offence and investigate the matter. The case was later transferred to the Economic Offences Wing (EOW), which has now initiated a detailed probe.

Redevelopment Project Details

The redevelopment project pertains to four old buildings—Shrikrishna Niwas, Mogre House, Tambawala Building and Kashinath Niwas—standing on CTS Nos. 818, 819, 820 and 821 at Dattaram Lad Marg. The society comprised 126 residential tenants and 25 commercial occupants.

As per the FIR, Siddhivinayak Construction submitted a redevelopment proposal under Development Control Regulation (DCR) 33(7) in 2002, promising rehabilitation of all eligible tenants while utilising the remaining Floor Space Index (FSI) for sale components.

A development agreement was executed on July 22, 2007, under which the developer agreed to construct 126 residential rehabilitation units, 25 commercial units and 51 sale units.

The builder received the Intimation of Disapproval (IOD) on March 11, 2008, followed by the Commencement Certificate on March 4, 2009. MHADA had also issued the required no-objection certificate for the redevelopment project.

Investigators said the developer completed construction in 2017 and handed over possession to 139 of the 144 eligible tenants but allegedly did so without obtaining the mandatory Occupation Certificate (OC). Five members are yet to receive possession.

Financial Irregularities Alleged

The FIR further alleges that the developer failed to pay Rs 2.80 crore towards transit rent between 2014 and 2017 despite being contractually obligated to do so.

It is also accused of not clearing municipal property tax, water charges and assessment dues amounting to Rs 2.36 crore, forcing society members to pay the outstanding amounts themselves to prevent the rehabilitation flats from being sealed by the Brihanmumbai Municipal Corporation.

The complaint alleges that Siddhivinayak Construction illegally sold 33 rehabilitation flats and three reserve units meant exclusively for existing tenants to third parties without obtaining the consent of either the tenants or the housing society.

It further claims that the flats were sold to 13 purchasers and mortgaged to nine financial institutions, enabling loans totalling Rs 37.80 crore, allegedly in violation of the project's Letter of Intent (LOI) and the redevelopment conditions.

The FIR also accuses the developer of executing double registrations for six flats and states that the company obtained FSI/TDR benefits worth nearly Rs 15 crore from the project.

The complainant has alleged that the accused was in the process of selling the Transferable Development Rights (TDR) to third parties after the municipal authorities approved the TDR proposal on September 24, 2025.

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Accused And Investigation

The accused include Siddhivinayak Construction Pvt. Ltd.; its directors, Sachin Madhukar Khanolkar, Bindiya Sachin Khanolkar and Abhijit Vasantrao Kabir; 13 purchasers of the disputed flats; and nine financial institutions, including DBS Bank (formerly Lakshmi Vilas Bank), Axis Bank, Aadhar Housing Finance Ltd., Federal Bank, Mogaveera Co-operative Bank, LIC Housing Finance Ltd., IDFC First Bank (formerly Capital First Bank) and Asset Reconstruction Company Ltd.

Police said further investigation into the alleged redevelopment fraud is underway.

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