A major controversy has emerged in Mumbai’s Chembur area over alleged fraud linked to slum redevelopment projects, where a 71-year-old builder has accused multiple individuals of cheating him out of nearly ₹3 crore. Police have registered an FIR against seven accused persons on charges of cheating, criminal breach of trust, and financial irregularities, and have launched a detailed investigation.
Initial Investment and Promises
The complainant, Nitin Gandhi, a construction businessman, alleged that in 2012 he was approached by an individual named Bastiram Ahad with an investment proposal in several slum redevelopment projects located in Chembur and Mahim. He was reportedly promised an 11% stake in the company, annual returns of 18%, redevelopment rights in the projects, and a position as a director.
Based on these assurances, Gandhi invested approximately ₹98 lakh between 2012 and 2013 across four redevelopment projects. However, he claims that despite repeated assurances over several years, he neither received ownership rights nor the promised financial returns.
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Project sale and transfer of redevelopment rights
During the investigation, it came to light that one of the projects was allegedly sold in 2015 to a private company for around ₹4.35 crore, along with additional development rights. The complainant alleged that he was neither informed about this transaction nor consulted, despite being an investor in the arrangement.
It has further been alleged that the remaining redevelopment projects were later transferred to other companies reportedly controlled by the accused and their relatives. This, according to the complaint, led to the diversion of profits and redevelopment benefits away from the original firm in which he had invested.
Preliminary Police Findings and Next Steps
Police officials stated that preliminary findings indicate possible irregularities in financial transactions and profit distribution across the projects. The complainant reportedly discovered the alleged fraud when he noticed that profits from the redevelopment projects were being routed to other entities while the original company was shown to have a weak financial position.
In his statement, Nitin Gandhi said that he was repeatedly assured of his investment returns and stake, but none of the commitments were fulfilled over time. He further alleged that key financial decisions and project transfers were executed without his knowledge or consent.
A senior police inspector confirmed that an FIR has been registered against seven individuals under relevant sections of the Bharatiya Nyaya Sanhita. The accused include Bastiram Ahad, Dharmila Ahad, Hitesh Ahad, Ruchita Ahad, and others linked to redevelopment firms.
No arrests have been made so far. Officials said that the investigation is currently focused on examining company documents, bank transactions, and all records related to the redevelopment projects.
The investigation team is also trying to determine whether the alleged fraud was limited to a single project or whether other investors may have been similarly affected.
Regulatory Concerns Raised
The case has once again highlighted concerns over transparency and regulatory oversight in long-term redevelopment projects, where complex financial structures and multiple stakeholders often lead to disputes and allegations of fraud. Police have said that further action will depend on forensic analysis and verification of financial records.
