The Mulund East redevelopment fraud case has intensified after police arrested two builders over alleged financial misconduct in a Mumbai project. Authorities claim that funds worth ₹2.55 crore were partially diverted, with only a fraction recorded in official accounts. The case, linked to a partnership dispute within a construction firm, also involves missing documents and alleged concealment of transactions. Investigators are examining discrepancies between actual sales and recorded entries, along with internal control failures. The accused have been remanded to judicial custody, and further findings are expected as financial records and witness statements are analysed.

Mulund East redevelopment fraud: Two builders arrested over alleged Rs 2.55 crore cheating

Navghar police arrest two builders in a redevelopment dispute, alleging financial misconduct and diversion of funds linked to a Mulund East project. Investigation continues into partnership dealings and missing records.

The Mulund East redevelopment fraud case has come under scrutiny after Navghar police arrested two builders for allegedly cheating a business partner and siphoning off more than Rs 2.55 crore.

According to police officials, the accused have been identified as Kamlesh alias Keshav Damji Minat (51) and Premji Velji Patel (53), both currently remanded to judicial custody.

The case relates to a partnership dispute within Amardeep Construction Company, a firm reportedly established in 2011 by a Navi Mumbai-based builder, the accused, and another partner.

Police said the firm undertook a redevelopment project in Mulund East in 2014, where the initial equal partnership structure was later allegedly altered under pressure in favour of the accused.

Partnership restructuring and alleged financial irregularities in the Mulund East project

Investigators stated that between August 30, 2018, and December 29, 2020, three flats were sold to a single family as part of the redevelopment project.

While the total transaction value was Rs 2.55 crore, officials said only Rs 31.32 lakh was deposited into the company’s official account during the relevant period.

The remaining amount, according to the police complaint, was allegedly collected in cash and misappropriated without the knowledge or consent of the complainant and other stakeholders.

Authorities further indicated that this alleged diversion of funds forms the central basis of the cheating and criminal breach of trust allegations in the ongoing investigation.

Missing documents and alleged concealment raise red flags

Investigators reported that several key documents, including agreements, payment receipts, and possession letters, were not entered into the official records maintained by the company.

Police sources suggested that the absence of these documents from company records indicates possible deliberate concealment and raises questions regarding transparency in financial dealings.

Such discrepancies, officials noted, are being examined as part of the broader probe into whether the accused systematically bypassed formal accounting procedures.

The investigation is also focusing on how internal controls within the firm may have failed to detect or prevent the alleged irregularities over an extended period.

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Fraud surfaced after unauthorised entry into project flats

The alleged fraud came to light in November 2025 when a site supervisor reported that unknown individuals had entered certain flats without prior authorisation.

This development prompted further verification of ownership and documentation, ultimately leading to the discovery of discrepancies in transaction records linked to the flats.

Police intervention followed, with preliminary findings indicating inconsistencies between actual transactions and officially recorded financial entries within the company’s accounts.

Authorities have since initiated a detailed review of all transactions associated with the redevelopment project to establish the full extent of alleged financial misconduct.

FIR registered under BNS provisions; further probe underway

Based on a formal complaint filed on February 9, 2026, Navghar police registered a First Information Report under Sections 406 and 34 of the Bharatiya Nyaya Sanhita.

Officials confirmed that the role of another individual mentioned in the complaint is also under examination as part of the ongoing investigation process.

Both accused were produced before a local court and subsequently remanded to judicial custody, with further legal proceedings expected in the coming weeks.

The case remains under active investigation, and authorities have indicated that additional findings may emerge as financial records and witness statements are analysed further.

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Editorial Note:

This article is based on publicly available FIR records, court case references, and reports published by multiple media organisations. The information is presented in the context of ongoing investigations and public interest reporting. Sprouts News does not make any judicial determination regarding the individuals mentioned and does not intend to defame any person or organisation. Any individual seeking clarification or wishing to provide an official response may contact the editorial team with verifiable documentation. The information is presented for journalistic and informational purposes.