Redevelopment Scam Exposed in South Mumbai’s Fanaswadi.

Shocking Redevelopment Scam in South Mumbai

• Tenants Cheated by Shagun Realty

• Fake Agreements, No OC, Forced Possession

Unmesh Gujarathi
Sprouts News Network

The Sprouts Special Investigation Team has unearthed alarming irregularities in a redevelopment project at Fanaswadi, Thakurdwar Road, under C.S. No. 2255. The project, involving developer Shagun Realty (now operating as Shagun Bluekey Realty and Mirai Avinya Group), is mired in allegations of fraud, misrepresentation, and non-compliance with redevelopment norms under DCR 33(7).

According to official records, tenants were shifted under Permanent Alternate Accommodation (PAA) agreements around December 2012 and January 2013. However, these agreements were executed while the property was still under dispute with the MCGM over a retail market space. Despite this, Shagun Realty allegedly secured a composite NOC from MHADA — the legality of which remains questionable.

• Bogus Agreements and Identity Manipulation Raise Legal Red Flags

The Sprouts Special Investigation Team (SIT) discovered that the PAA agreements lacked basic legal formalities: no witness signatures from Shagun Realty’s side, missing project plans, and stamp duty and registration fees wrongly charged to tenants. Alarmingly, the agreements were signed by an individual — Shrenik Suresh Seth — who was not listed as a partner at the time, with his official association appearing only in a 2016 ROF certificate.

Tenants were promised equal construction quality in both the rehab and sale wings. In reality, the rehabilitation wing (Wing-A) suffers from poor construction, lower ceiling heights in commercial premises, and multiple complaints of water leakage. As per rules, commercial spaces must have a minimum height of 13’-11”, but only 12’-6” has been provided. Additionally, the required 1/3rd mezzanine floor (sajja) — mandated under redevelopment norms — has not been constructed, seemingly to cut costs.

• Mumbai Redevelopment Violations: MHADA and MCGM Under Scrutiny

As per the agreement, tenants were entitled to 50% additional transit compensation in case of delays, and 100% if delays exceeded 42 months. However, the developer failed to honor both clauses. The promised co-operative housing society has also not been registered, despite full occupancy.

Promised amenities such as bore-well systems, water harvesting units, and high-speed elevators remain either absent or non-functional. There is no intercom connectivity in the lobby. Shockingly, tenants are being forced to take possession without an Occupation Certificate (OC) — a grave violation of Mumbai’s redevelopment policy.

Also Read: MahaRERA Orders Mumbai Builder to Pay Interest for Flat Delay in Malad Project.

• Fraudulent Rebranding Tactics Alert New Buyers

The Sprouts Special Investigation Team warns prospective buyers that the project is now being misleadingly promoted under the unregistered name “Mirai Avinya Group.” This entity has no traceable presence in MHADA, the MCGM’s Building Proposal Department, MAHARERA, Income Tax, or GST records. No public advertisement or disclosure was issued regarding this name change.

The project is referred to as “Krishvi Towers” in the PAA agreement, but this name is allegedly fraudulent. The MAHARERA registration lists the project as “Krishvi Escape,” and several essential documents are either missing or forged. Buyers are strongly advised to verify all documents related to C.S. No. 2255 before investing.

• More Revelations Expected

The Sprouts Special Investigation Team will soon release Episode 5 of its ongoing exposé into Mumbai’s flawed redevelopment system. Sources indicate deeper involvement from high-level officials and growing evidence of regulatory negligence that has enabled such malpractice to thrive.