MUMBAI: Mumbai’s Economic Offences Wing (EOW) has opened an investigation into what officials describe as one of the city’s most audacious housing frauds in recent years. The case centers on the “Sky 31” residential project in Wadala (West), where developers are accused of misappropriating roughly ₹100 crore collected from homebuyers under the pretext of constructing flats.
The FIR, filed under Sections 420 (cheating), 406 (criminal breach of trust), and 34 (common intention) of the Indian Penal Code, followed a preliminary inquiry that revealed systemic irregularities in fund utilization and documentation.
The investigation began after a formal complaint by Anil Mohanlal Dron, a 62-year-old chartered accountant from Kandivali (West). Dron alleged that he and dozens of other homebuyers were deceived by the project’s promoters—identified as Subbaraman Anand Vilayanur, Uma Subbaraman, and the firm B.P. Ganger Constructions Pvt. Ltd.—who, he said, took substantial payments but failed to deliver the promised homes.
Funds Diverted, Promises Broken
According to the FIR, the alleged fraud spanned from 2018 to the present. Investigators believe the accused, acting in concert, collected money from at least 102 buyers and then diverted a “substantial portion” of the funds to personal accounts and associated companies.
Instead of channeling the proceeds toward construction, as stipulated in buyer agreements, the developers allegedly used the funds for unrelated business activities and personal gain. Officials familiar with the case said that tracing these financial flows has become central to understanding how investor money was systematically siphoned off.
“The buyers were led to believe that construction was proceeding on schedule,” an EOW officer said, requesting anonymity as the probe is ongoing. “In reality, very little progress was made, and a large chunk of the money went elsewhere.”
Flats Sold Twice, Buyers Left in Limbo
Perhaps the most startling revelation came when investigators discovered that some flats in the Sky 31 project were sold to multiple buyers. Payments, officials said, were collected separately from each party—effectively doubling the developers’ earnings while leaving both buyers defrauded.
This practice, though rare, has surfaced before in Mumbai’s high-stakes real estate market, where buyers often pay in advance for under-construction units. Legal experts say that overlapping sales are a telltale sign of deliberate intent to defraud rather than simple mismanagement.
The EOW’s Banking Unit–3, Cell 11, is currently reviewing transaction records, sale agreements, and digital communications to determine how widespread the double-selling practice may have been.
A Familiar Pattern in Mumbai’s Real Estate
For now, the accused developers face charges of cheating and criminal breach of trust, and the EOW is expected to summon them for questioning. For the 102 buyers still waiting for their promised homes, the case represents yet another reminder of how easily trust—and savings—can vanish in Mumbai’s volatile housing market.
