Shagun Realty Scam: Fake Flats & MHADA-MCGM Nexus Bared.

Sprouts News Special Investigation Team (SIT) uncovers a major redevelopment scam by Shagun Realty in Mumbai’s Fanaswadi area. With expired approvals, false branding, and alleged MHADA-MCGM collusion, illegal demolitions and unauthorized sales continue. Violations include tree cutting, tax evasion, and tenant intimidation, exposing deep-rooted corruption in the redevelopment process.

The Sprouts News Special Investigation Team (SIT) has uncovered a major redevelopment scandal centered around a property in Fanaswadi/Thakurdwar Road, Mumbai. The project, led by “Shagun Realty,” is allegedly backed by corrupt practices involving MHADA’s C-Ward and Bandra offices and MCGM’s C-Ward departments (Property and Building Proposal, Wadala Division).

As per City Survey No. 2255, the developer obtained an NOC and Commencement Certificate (C.C.), both now expired as of January 2025. Despite this, Shagun Realty continues to aggressively promote and sell residential flats in the project, raising serious legal and regulatory concerns.

Although the NOC and C.C. were issued in the name of Shagun Realty, the project is registered under Shagun Bluekey Realty in MAHARERA using allegedly invalid documentation. Sales promotions are conducted under another name—Mirai Avinya—with widespread pamphlet distribution and on-site advertising.

To further complicate matters, past tenant agreements (PAA) mention the name Krishvi Towers, while the current sale offering is branded as Krishvi Escape. This latter entity has no known registration with Income Tax, GST, MHADA, MCGM’s Building Proposal Department, Property Tax Department, Environment Department, or Pollution Control Board. This multilayered misrepresentation is causing confusion and risk to real estate agents, potential buyers, and former tenants alike.

The land in question had two large trees that were illegally cut down by Shagun Realty without permission from the Tree Authority. Additionally, a closed, water-filled well located at the rear of the old Cess Building No. 2 was concealed during development activities.

MCGM’s C-Ward records show this property was converted into open land by 2013. However, MHADA documentation contradicts this, indicating multiple non-cess sheds and galas existed on the site until at least 2015. These discrepancies suggest manipulation or suppression of facts in official records to facilitate irregular approvals.

All tenants from Cess Building No. 2 vacated the premises by September 30, 2015. Yet, Shop No. 10 in Cess Building No. 1 was demolished a year earlier—on September 30, 2014—under Section 95-A of the MHADA Act, 1976. According to the Sprouts News SIT, this action may have been a result of substantial bribes allegedly paid to MHADA officials at the C-Ward office.

Further confusion arises as commercial premises in Cess Building No. 1 were handed over in October 2015, raising questions about the selective and premature demolition of Office No. 10. Why this specific unit was targeted remains unanswered.

There is no documented debris management plan for the property as per CS No. 2255, violating essential environmental and construction norms. Additionally, the project never secured a mandatory NOC from the Labour Commissioner, a serious lapse considering the scale of construction.

Despite this, Shagun Realty secured MHADA’s NOC post-2016 by submitting allegedly fraudulent receipts for Property Tax and MHADA Cess. These were reportedly accepted by MCGM’s C-Ward Property Tax Department, further entrenching administrative complicity.

Numerous tenants and occupiers of both Cess Buildings 1 and 2 received 95-A notices, which were allegedly issued without due legal process. Notices were also sent to gala and factory occupants, enabling forced evictions with full support from MHADA’s C-Ward and directives from the Bandra Head Office.

This coordinated pressure has generated fear among residents and stakeholders, revealing systemic abuse of legal provisions to benefit a private builder at the cost of public trust.