Real Estate Fraud Case: Mantra Insignia Directors Booked for ₹33.51 Crore Fake Letterhead Scam in Pune
Pune Police have registered a case against directors of the Mantra Insignia project for allegedly cheating a landowning family of ₹33.51 crore. The complaint claims forged letterheads were used to reduce agreed compensation while additional FSI benefits were concealed after planning authority changes. The Economic Offences Wing is investigating alleged misuse of approvals and deliberate suppression of contractual rights in the Keshav Nagar redevelopment project.
Real estate fraud investigations in Pune have intensified after police booked senior directors of the Mantra Insignia project for allegedly cheating a landowning family of ₹33.51 crore using forged documents and concealed approvals.
Pune Police registered the case following a detailed complaint that accused the developers of fabricating official correspondence, suppressing contractual obligations, and misusing regulatory changes to divert substantial construction benefits for personal financial gain.
The Economic Offences Wing has taken over the probe, signalling the seriousness of the allegations and growing scrutiny of high value real estate transactions in Pune’s rapidly expanding residential corridors.
The case centres on a redevelopment project at Keshav Nagar, where a 79 guntha land parcel was handed over for residential construction under a joint development agreement.
According to investigators, the landowner was promised a fixed share of built up area and additional entitlements if government policy changes increased permissible construction limits.
The complainant, Yugank Subhash Kadam, represents his father’s firm Subhash Kadam and Associates, which entered into the agreement after earlier development plans failed due to technical obstacles.
Under the original contract, the family was entitled to 29,500 square feet of constructed space, along with 40 percent of any additional Floor Space Index sanctioned by authorities.
This clause became crucial after the project moved from the PMRDA planning authority to Pune Municipal Corporation limits, triggering a sharp increase in allowable construction area.
Fake Letterhead Fraud and FSI Manipulation Allegations Explained
Police allege that instead of informing the landowner about the expanded FSI, the developers quietly obtained approvals, paid charges, and sourced Transferable Development Rights to maximise construction potential.
Investigators say the accused directors then prepared forged letters on the landowner’s company letterhead, falsely claiming consent to drastically reduced compensation terms.
The forged document allegedly stated that the landowner accepted only 10,000 square feet at ₹2,300 per square foot, far below agreed rates and prevailing market prices.
Based on official calculations, the landowner should have received an additional 69,395 square feet from enhanced FSI, valued at approximately ₹28.62 crore at ₹4,125 per square foot.
Combined with unpaid dues of ₹4.88 crore for earlier construction entitlements, the total alleged cheating amount reached ₹33.51 crore, as recorded in the FIR.
Police documents describe the alleged acts as deliberate concealment rather than accounting disputes, pointing to sustained planning over several years.
The alleged fraud occurred between June 2019 and December 2023, spanning crucial phases of project approvals, construction, and market sales.
An FIR was registered at Mundhwa Police Station against directors Rohit Ghanshyam Gupta, Vishal Nandlal Gupta, and promoter Siddharth Jain, all associated with the Mantra Insignia project.
Officials noted that the accused held decision making authority and were contractually responsible for ensuring transparent execution of development terms.
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Why the Case Raises Wider Concerns for Pune’s Property Market
The investigation is being led by Assistant Police Inspector Dattatray Waghmare of the Economic Offences Wing, which is examining financial trails and authenticity of regulatory submissions.
According to Sprouts News, the case highlights vulnerabilities in joint development agreements, especially when regulatory changes significantly alter project economics mid execution.
Real estate analysts say Floor Space Index revisions often create windfall gains, making transparency and consent documentation critical to prevent exploitation.
Experts warn that forged consent letters undermine trust not only between private parties but also weaken regulatory safeguards designed to balance developer growth with landowner rights.
The case has renewed debate on whether landowner agreements receive sufficient oversight under existing real estate regulations, despite protections under RERA frameworks.
Industry observers note that similar disputes have surfaced across Pune, raising concerns about systemic risks when documentation verification remains inadequate.
Mantra Properties has previously faced allegations in unrelated land disputes, intensifying scrutiny of governance practices within large real estate firms.
Law enforcement sources indicate that further disclosures may emerge as forensic audits progress and linked financial transactions are traced.
The Sprouts News Special Investigation Team believes the outcome could influence future enforcement norms, encouraging stricter scrutiny of FSI driven project modifications.
If charges are proven, the accused may face serious penalties under Indian Penal Code sections related to cheating, forgery, and criminal conspiracy.
Beyond individual accountability, the case serves as a warning to landowners, investors, and regulators about the need for vigilance in complex redevelopment arrangements.
For Pune’s fast growing property market, the investigation reinforces a core lesson that transparency, documented consent, and regulatory accountability remain essential foundations for sustainable urban development.
Readers’ Appeal
Unmesh Gujarathi, an incisive and relentless investigative journalist, has exposed a wide spectrum of scams, financial malpractices, and institutional frauds through meticulous research and fearless reporting. His work stands as a testament to accountability, transparency, and the public’s right to truth. If you are a victim of any form of fraud, deception, or unethical practice—or if you possess credible information that warrants investigation—you are encouraged to reach out without hesitation. You may contact us directly on 9322755098; your identity will be treated with due sensitivity, and every disclosure can play a vital role in uncovering the truth and protecting the public interest.
