200+ Buyers Duped in Twin Redevelopment Frauds
• Vastu Nakshatra & Swagatam Projects Under SIT Lens
• Developer Disputes Leave Buyers Homeless
• Police Book Nine in Mega Housing Fraud
Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
A ₹32 crore SRA housing scam has rocked Borivali (East), where over 200 buyers were duped in the Vastu Nakshatra and Swagatam projects. Developers took hefty advances but never delivered possession, citing disputes and “technical issues.” Police booked nine accused under cheating and breach of trust, with SIT probing deeper into systemic loopholes in SRA redevelopment oversight.
A massive housing fraud has surfaced in Borivali (East), where over 200 homebuyers have allegedly been cheated of ₹32 crore in two Slum Rehabilitation Authority (SRA) redevelopment projects — Vastu Nakshatra and Swagatam.
According to the complaint filed at Kasturba Marg Police Station, developers, partners, and agents associated with these projects took advance booking amounts from buyers but failed to deliver possession. The projects were marketed as part of the Mahakalinagar SRA redevelopment scheme and were linked to prominent local developers.
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Investors Trapped in SRA Redevelopment Fraud
The case came to light when Borivali West resident
Anil Kochunni Mambily (55) lodged a complaint stating that in 2011, he was introduced to Vastu Nakshatra through a friend. The project, located in Devi Pada, was being developed by Nirman Developers under the SRA scheme.
Mambilli claimed that Vishal Soni of Soni Properties and Udaykumar Le Singh, a partner at Nirman Man Developers, initially advised him against booking, but later accepted ₹2.5 lakh as an advance for a 3BHK flat. Upon receiving an allotment letter, he paid an additional ₹32.81 lakh. However, possession was repeatedly delayed, with the developers citing “technical issues” as justification.
Contract Cancellations and Ownership Disputes
The Sprouts News Investigation Team (SIT) found that in 2017, partner Gautam Pandey erected a new signboard naming JSP Developers Pvt Ltd as the builder. Further inquiries revealed that the land was originally owned by Nagaji Motiji & Company, which had granted an irrevocable power of attorney to Amogh Enterprises in 2005.
In 2010, Amogh Enterprises signed a confirmation agreement with Nirman Developers. However, on March 31, 2018, Nagaji Motiji & Company canceled the agreement with Udaykumar Singh and Nirman Developers, simultaneously signing a new deal with Gautam Pandey and Amogh Enterprises. These internal disputes, coupled with multiple agreement cancellations and re-registrations, ultimately left buyers without their promised homes.
Swagatam Project Mirrors the Same Scam
During his complaint to the Economic Offences Wing (EOW), Mambily discovered that Swagatam, another Borivali redevelopment project, followed a similar pattern of deception. Both projects involved taking large advances under the pretext of flat bookings but failing to execute legal handovers.
Police have now registered a case against nine individuals under IPC Sections 420 (cheating and dishonestly inducing delivery of property) and 409 (criminal breach of trust). The Sprouts News Investigation Team (SIT) notes that the scope of the fraud may expand as more buyers come forward.
Also Read: ₹60 Cr Fraud Case Upon Shilpa Shetty and Husband Raj Kundra.
Growing Concern Over SRA Project Integrity
Housing activists warn that this incident highlights severe loopholes in SRA project oversight. SRA redevelopment schemes, intended to improve living conditions for slum dwellers while offering saleable flats to private buyers, have increasingly become fertile ground for developer fraud and legal disputes.
Legal experts say the Borivali case could set a precedent for stronger due diligence protocols in SRA redevelopment investments, including mandatory escrow accounts, tighter RERA enforcement, and transparent developer-partner agreements.
According to the Kasturba Marg Police complaint, nine individuals have been named as accused in the ₹32 crore Borivali SRA fraud case. They include Vishal Soni of Soni Properties, Udaykumar Le Singh of Nirman Man Developers, Gautam Pandey of JSP Developers Pvt Ltd, and partners connected with Amogh Enterprises. Also named are Rajesh Soni, Sunil Yadav, Rajesh Sharma, Sanjay Singh, and Prakash Gupta, all alleged to have played active roles in collecting booking amounts and misleading buyers about project progress. Police sources indicate that their involvement spans from fraudulent marketing and fund collection to orchestrating ownership disputes, ultimately stalling the delivery of promised flats in the Vastu Nakshatra and Swagatam projects.
The Sprouts News Investigation Team (SIT) will continue tracking police investigations, potential arrests, and any action taken by SRA authorities to safeguard buyer interests.
