Shagun Realty Scam Exposed

• MHADA 95-A/ Order Misused, Shop Demolished

• Sprouts SIT Uncovers ₹3,000 Cr Redevelopment Fraud

Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098

The Sprouts News Special Investigation Team (SIT) exposes a major redevelopment scam involving Shagun Realty and MHADA officials. Section 95-A/ Order of the MHADA Act was allegedly misused to illegally demolish a senior citizen’s shop without due process. Fraudulent documents, tax evasion, and regulatory collusion fueled a ₹3,000 crore project.

In a startling revelation, the Sprouts News Special Investigation Team (SIT) has unearthed a series of irregularities in a high-stakes redevelopment project at Fanaswadi–Thakurdwar Road, allegedly facilitated through the misuse of Section 95-A/ order of the MHADA Act, 1976. The developer, Shagun Realty, is accused of colluding with key officials from MHADA’s Bandra office and C-Ward Division-II Chandanwadi to unlawfully demolish Shop No. 10, occupied by senior citizen Bhupendra C. Doshi, for commercial gain.

Shagun Realty Scam: Demolition Without Due Process Raises Legal and Ethical Alarms

On 30 September 2014, Shop No. 10 in Cess Building No. 1, under C.S. No. 2255, was demolished without police protection, proper documentation, or legal procedure. The demolition was supervised by Executive Engineer Dinkar Bhujbal and Deputy Engineer Tripathi along with their staff from MHADA’s C-Ward Division-II. The developer’s representatives, Shri Suresh Seth and his son Shrenik S. Seth, were present during the demolition.

Tenant Bhupendra C. Doshi, who was also on-site, demanded documents such as the Valid NOC, IOD, CC from MCGM, as well as Temporary and Permanent Alternate Accommodation Agreements (TAA/PAA). However, all requests were allegedly denied. The demolition was carried out without intimation to LT Marg Police Station, without photography or video documentation, raising serious questions about transparency and legality.

Sprouts SIT Flags Nexus Between Developer and Government Officials

Sprouts SIT’s document analysis suggests a premeditated plan between Shagun Realty and MHADA officials to forcibly vacate the premises. According to the investigation, C.S. No. 2255 had not been transferred in the name of the developer, violating the primary condition for invoking Section 95-A/ order. Additionally, the Power of Attorney (PoA) used for redevelopment authorization became invalid after one partner’s death within two months of execution.

Moreover, the developer allegedly did not clear ₹77 lakh in property tax and MHADA cess, yet secured a bogus tax clearance certificate from MCGM’s C-Ward Assessment Department, signed by Assessment Officer Mr. Thorat. This fraudulent clearance facilitated the illegal issuance of the 95-A notice and subsequent demolition.

Bogus Documents and Forged Agreements Under Scrutiny

Sprouts News SIT discovered that the Leave and License agreement submitted under the name of Mahesh Shah was fictitious. It bore signatures from Shrenik Seth, who at the time was not even a legal partner in Shagun Realty. The Licensor’s identity, “Mahesh Shah”, could not be verified against any legal society records, reinforcing suspicions of document fabrication.

Critically, Shagun Realty had a declared capital of only ₹5 lakh, while the estimated construction cost exceeded ₹281 crore. Yet, neither MHADA Bandra’s Chief Officer Shri Ramesh Surwade nor the C-Ward engineering staff raised objections or conducted financial due diligence—a glaring lapse in governance.

Shagun Realty Scam Exposed in ₹3000 Cr Project

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Redevelopment Profits Overshadow Ethical Standards

The project site has since witnessed the construction of a 42-storey tower, allegedly based on falsified documents and illegal permissions. The market value of the project is estimated to exceed ₹3,000 crore, with a projected profit of ₹1,500 crore. To evade tax liabilities, Shagun Realty reportedly rebranded as “Shagun Bluekey Realty” in September 2018, an act designed to conceal past tax defaults including sales tax, service tax, capital gains, and property taxes.

The Sprouts News SIT highlights that this transformation was executed without informing key tax and civic departments, enabling the firm to escape historical dues and regulatory scrutiny.

Call for Central Government Investigation Intensifies

This case highlights not just an isolated instance of administrative malpractice but an alarming pattern of systemic exploitation of legal provisions under the MHADA Act. Section 95-A/ order originally meant to facilitate equitable redevelopment, is allegedly being twisted into a tool for fraudulent real estate enrichment.

The Sprouts News Special Investigation Team (SIT) strongly urges the Central Government to appoint an independent Special Investigation Team to examine this matter in detail. The scale of the financial manipulation, the abuse of administrative power, and the victimization of lawful tenants call for immediate and transparent accountability.