Mumbai: A major fraud case has emerged from Mumbai’s Mulund area, where alleged financial irregularities worth around ₹2.55 crore have been uncovered in a redevelopment project. Two builders have been arrested for allegedly cheating their own business partner by misappropriating funds generated from the sale of flats. Initial findings suggest that the fraud was carried out in a planned manner, involving concealment of key documents and diversion of funds through cash transactions.
According to investigators, the case is linked to a construction firm that was established in 2011 under a partnership model. Initially, all partners held equal stakes in the company. However, over time, the terms of the partnership were allegedly altered under pressure. Thus, resulting in greater control being concentrated in the hands of the accused. It is suspected that financial irregularities began soon after these changes were implemented.
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Three Flats Sold, Only Partial Amount Deposited
The arrested accused have been identified as Keshav alias Kamlesh Damji Minat and Premji Velji Patel. They are alleged to have sold three flats in a redevelopment project located in Mulund East to a single family. The total deal value of these flats was reportedly ₹2.55 crore. However, only ₹31.32 lakh was deposited into the company’s official account. The remaining amount was allegedly collected in cash and retained by the accused without informing the other partners.
Investigators have indicated that crucial documents related to these transactions were deliberately excluded from the company’s official records. These include sale agreements, payment receipts, and possession letters. The absence of such documentation points towards a calculated effort to conceal the fraudulent transactions and manipulate financial records.
Site Supervisor’s Report Exposes Irregularities
The fraud came to light in November 2025 after a site supervisor reported the unauthorised entry of unknown individuals into the flats. This triggered a closer inspection of the project, during which discrepancies in flat sales and financial transactions were discovered. The findings eventually led to the exposure of the alleged scam.
Following the discovery, a formal complaint was filed in February 2026, leading to the registration of a case and the initiation of a detailed investigation. The accused were produced before a court and have since been remanded to judicial custody. Authorities are continuing their probe to determine whether more individuals were involved in the operation.
The use of cash transactions and informal agreements often increases the risk of fraud, leaving both investors and partners vulnerable to financial losses.
Financial Records and Digital Evidence Under Scrutiny
Officials have stated that a thorough examination of financial records, bank transactions, and digital evidence is currently underway. Investigators are also trying to ascertain whether the family that purchased the flats was aware of the irregularities. Another key focus of the probe is to determine whether similar off-the-record transactions were carried out in other deals linked to the same project. The case once again highlights the pressing need for transparency and regulatory oversight in the real estate sector.
