Gujarat: The Economic Offences Wing (EOW) of the Surat Police has taken 55-year-old Purshottam Chavan into custody on a production warrant from Mumbai’s Arthur Road Jail in connection with an alleged ₹2.15 crore fraud case. Chavan was already lodged in judicial custody in a separate high-profile money laundering case. He was brought to Surat under tight security for questioning, with investigators hoping his interrogation will help uncover the roles of other suspects and trace the allegedly misappropriated funds.
The action follows a complaint filed by Surat-based textile trader Prayag Jariwala. According to the complaint, Purshottam Chavan, along with his associates Dipak More and Umesh Manjrekar, allegedly induced Jariwala’s sister, Alpa Lakhlani, by promising her a flat in Mumbai under a government housing quota at a substantially discounted price. Investigators allege that the accused collected ₹2.15 crore from the victim on the pretext of securing the allotment.
Police said the accused allegedly provided the victim with a forged Maharashtra government allotment letter to make the transaction appear genuine and legitimate. The alleged fraud came to light after doubts arose over the authenticity of the documents and the promised flat was never allotted. Following the complaint, Surat Police registered a case on June 1 and launched an investigation.
Investigators said Chavan’s custodial interrogation is expected to help determine how the allegedly defrauded money was utilised, identify the bank accounts through which the funds were routed, and establish the involvement of other individuals connected to the scheme. Police are examining financial transactions, banking records, documentary evidence, and digital data as part of the investigation.
Preliminary findings suggest that the alleged fraud involved the misuse of a purported government housing scheme and the use of forged official documents to deceive the victim. Investigators are also examining whether any additional individuals or organised groups were involved in preparing the fake allotment letter and whether similar frauds were carried out using the same modus operandi.
Officials said that if additional victims or related fraudulent transactions are identified during the investigation, those cases will also be brought within the scope of the probe. Efforts are underway to recover the allegedly siphoned funds and identify any assets purchased using the proceeds of the alleged fraud.
According to the Future Crime Research Foundation (FCRF), fraudsters involved in fake government housing and subsidised property schemes frequently exploit forged allotment letters, fabricated government documents, and false claims of political or administrative influence to gain victims’ confidence. The organisation advises prospective buyers to independently verify all documents with the concerned government department, confirm the authenticity of allotment procedures, and make payments only through authorised official channels.
Cyber and financial crime experts further caution that claims of government quota flats or properties being offered at prices significantly below market value should be treated with extreme caution. They recommend verifying the identity of intermediaries, validating all supporting documents with the relevant authorities, and avoiding advance payments until the legitimacy of the offer has been independently confirmed. The investigation is ongoing, and police continue efforts to identify additional accused persons and trace the complete flow of the allegedly misappropriated funds.
