Mumbai: A major cheating and criminal conspiracy case involving an alleged fraud of ₹17.50 crore has been registered at MRA Marg Police Station against the partners of R.A. Realty Ventures LLP, including Ashok Khemchand Kothari and Rajendra Khemchand Kothari. The investigation has now been transferred to the Economic Offences Wing (EOW).
Accused induced ₹151 crore redevelopment deal, later defaulted on payments
The complaint was lodged by Mohammed Azim Mohammed Salim Khan, 35, a legal executive with Rubberwala Housing and Infrastructure Pvt. Ltd.. According to the complaint, the accused allegedly induced the company into a redevelopment transaction worth ₹151 crore and later defaulted on payments despite repeated assurances, arbitration proceedings, and issuance of multiple cheques that were dishonoured.
According to the FIR, R.A. Realty Ventures LLP had undertaken the redevelopment project known as “Villa Nirmala” at Carmichael Road, Malabar Hill, Mumbai. Under MHADA regulations and DCR 33(7), the developer was required to hand over 1,629.61 square metres of constructed area free of cost to the MHADA authority.
Developer required to give 1,629 sq m free to MHADA under DCR 33(7)
To fulfill this obligation, the accused firm allegedly entered into a Memorandum of Understanding (MoU) dated December 24, 2014, with Rubberwala Housing and Infrastructure Pvt. Ltd. for the purchase of 6,190.92 square metres of built-up area in a redevelopment project at Girgaon for a total consideration of ₹151 crore.
Police said the agreement provided for payment in 14 stages. However, the complainant alleged that despite repeated demands, the accused delayed payments from the very beginning and eventually stopped paying altogether after making partial payments amounting to approximately ₹106.99 crore between 2014 and 2022.
Agreement provided 14 payment stages; accused stopped after ₹106.99 crore
The complainant further alleged that due to non-payment of dues, the construction project suffered severe financial stress, leading to mounting maintenance costs, labour expenses, and interest liabilities. Despite several legal notices issued between 2019 and 2020, the accused allegedly failed to clear the outstanding amount.
According to the FIR, the accused later issued multiple cheques, including post-dated cheques kept in an escrow account, but several of them were dishonoured due to “Insufficient Funds” and “Drawer’s Signature Differs.”
Multiple cheques dishonoured due to insufficient funds & signature mismatch
The complaint also alleged that two flats in the “Villa Nirmala” project, which had been kept as security in the escrow arrangement, were allegedly sold to third parties despite being offered as collateral security for the transaction.
Police said the dispute later went into arbitration, where a settlement agreement dated September 4, 2025, was reached. Under the settlement, the complainant company allegedly agreed to reduce its total claim of ₹69.72 crore, including interest and liabilities, to ₹17.50 crore. However, even after the settlement, several cheques issued by the accused towards the agreed amount were allegedly dishonoured again.
Settlement cheques dishonoured again; accused conspired from inception
The complainant has alleged that the accused partners of R.A. Realty Ventures LLP deliberately conspired to cheat the company from the inception of the deal by luring them with financial promises, misleading them into completing construction obligations for MHADA, and subsequently defaulting on payments.
Based on the complaint, police have registered a case under Sections 318(4), 3(5), and 61(2) of the Bharatiya Nyaya Sanhita, 2023 against the accused partners and others. Further investigation in the case is being carried out by the Economic Offences Wing.
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