Mumbai: The Enforcement Directorate (ED) has filed a prosecution complaint, or chargesheet, against 10 people and entities in connection with the alleged diversion of ₹43.73 crore collected from flat and shop buyers for redevelopment projects in Mumbai. The agency has alleged that promoters of the business group diverted funds collected for the projects for personal benefit instead of using the money for redevelopment work. Several projects were allegedly left incomplete, causing financial losses to buyers, original tenants and investors.
The ED filed the prosecution complaint before a special Prevention of Money Laundering Act (PMLA) court in Mumbai on July 31. The complaint names J Tanna, D Tanna, V Tanna and seven entities associated with the business group. According to ED officials, the court has ordered the issuance of pre-cognisance notices to the accused.
According to the agency, J Tanna and D Tanna were promoters of entities belonging to the business group. The promoters allegedly collected money from flat and shop buyers for various proposed redevelopment projects but diverted the funds for purposes other than the projects. The alleged diversion resulted in delays and non-completion of projects, leaving buyers and existing tenants facing financial losses.
The money laundering investigation began in 2024 after the Mumbai Police registered multiple FIRs against J Tanna, D Tanna and others. The cases were registered under relevant provisions of the Indian Penal Code and the Maharashtra Ownership of Flats Act (MOFA).
ED officials said 17 cases are currently part of the investigation. Police have already filed chargesheets in 14 of these cases. The ED subsequently examined the financial transactions linked to the alleged offences to determine how money collected from buyers was used and which individuals or entities allegedly benefited from the funds.
The redevelopment projects under investigation are located in DN Nagar, Andheri, Kandivali and Goregaon. The agency has estimated the alleged financial loss linked to these projects at ₹43.73 crore. According to the ED, the alleged diversion of funds affected not only flat and shop buyers but also original tenants whose properties were supposed to be redeveloped.
The ED had earlier attached assets worth ₹43.73 crore in connection with the case, treating them as alleged proceeds of crime. The attached properties include immovable assets located in Mumbai and Maharashtra’s Ahmednagar district. A property located in the United Kingdom was also brought under the agency’s action.
The agency is now examining the complete financial trail of the alleged diverted funds. Investigators are looking into the bank accounts through which money collected from buyers and investors was routed, the entities involved in subsequent transfers and the alleged beneficiaries of the transactions. The investigation is also aimed at establishing the connection between the alleged proceeds of crime and the properties attached by the agency.
The case highlights the financial risks that can arise in redevelopment projects when funds collected from buyers and stakeholders are allegedly used for purposes other than those for which they were raised. According to the ED’s allegations, the diversion of project-related funds affected the progress of redevelopment work and left several stakeholders facing financial uncertainty.
The filing of the prosecution complaint marks another stage in the money laundering investigation. The allegations against the accused individuals and entities will now be examined through the judicial process. The court will also consider the ED’s claims concerning the alleged proceeds of crime and the assets attached during the investigation.
Further proceedings will determine the legal status of the allegations against the accused. The ED is continuing to pursue the financial trail connected with the ₹43.73-crore alleged loss and the assets attached in the case.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
