• Massive Irregularities Exposed in Patra Chawl, Adarsh Society, and Twin Towers Noida Projects
Unmesh Gujarathi
Sprouts News Excludive
In a shocking turn of events, a major real estate scandal has surfaced, involving irregularities in redevelopment projects at Patra Chawl (Goregaon), Adarsh Society (Colaba – South Mumbai), and Twin Towers Noida (U.P.), near Delhi. The investigation by Sprouts has uncovered alarming financial and legal discrepancies that raise serious concerns about fraudulent activities and regulatory violations.
• A Rs. 2000 Crore Project Built on Mere Rs. 5 Lakh Capital?
One of the most astounding revelations pertains to the redevelopment project named “Krishvi Escape”—a project valued at approximately Rs. 2000 crore. However, documents suggest that the partnership firm behind this colossal development was registered with an initial capital of merely Rs. 5 lakh. This stark mismatch in finances raises serious questions about how such a massive project could be executed without adequate financial transparency and regulatory approvals.
Adding to the controversy, this project was allegedly not registered with critical government authorities, including the Income Tax Department, GST Department, MHADA (Mumbai), MCGM – C Ward, Property Tax & MHADA Cess Department, and even the Transfer of Property Authority. The absence of proper documentation suggests an attempt to evade scrutiny and bypass legal requirements.
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• Multiple Name Changes to Evade Detection?
Documents accessed by Sprouts reveal that the firm initially operated as “Shagun Realty,” which later changed its name to “Shagun Bluekey Realty” in September 2018. Shockingly, this change was not publicly disclosed, nor was it communicated to key government departments, including the Income Tax Department, GST Authorities, MHADA, MCGM, and even the tenants of the buildings under redevelopment.
In a further attempt to mislead stakeholders, the developers once again changed their identity, rebranding themselves as “Mirai Avenue Group” in December 2024. Sources suggest that this was done to distance themselves from the tainted reputation of “Shagun Group,” which had been blacklisted due to previous controversies.
Despite these name changes, the developers allegedly continued their operations without obtaining fresh approvals or informing authorities, leading to serious violations of laws and regulations governing real estate redevelopment projects.
• Ownership Discrepancies in 19 Properties
The Sprouts investigation further uncovered serious discrepancies in the ownership of 19 properties linked to this redevelopment project. Out of these, only one property (C.S. No. 2255) was transferred legally or illegally to Shagun Realty in 2016. However, the remaining 18 properties remain unregistered under the developer’s name, even after 17 years. This raises significant concerns regarding illegal land acquisition and potential fraud.
Additionally, it has been revealed that these lands were initially purchased between 2009 and 2011 under different names. The Conveyance Deed for one of these properties was allegedly manipulated to fraudulently register it under Shagun Realty’s name. Another property, C.S. No. 2257, was reportedly purchased from a mortgagor instead of the original vendor, further adding to the murkiness of the transactions.
• Regulatory Violations and Bureaucratic Complicity?
A deeper probe suggests that these irregularities were facilitated by bureaucratic loopholes and a lack of enforcement by regulatory bodies, including:
– MHADA (Mumbai)
– MCGM – Building Proposal Department
– Property Tax Department (‘C’ Ward)
– Registrar of Co-operative Housing Societies (‘C’ Ward)
– Transfer of Property Authority (Collector Office – Old Custom House)
– Charity Commissioner Office (Mumbai)
– Environment Authority (Mumbai)
The involvement of multiple government agencies suggests that widespread corruption and collusion may have played a role in enabling these fraudulent activities.
• Warning for Buyers: Exercise Caution!
With so many legal and financial irregularities surrounding this project, prospective buyers and investors are urged to exercise extreme caution before purchasing any residential or commercial units in these developments. Sprouts strongly recommends consulting a trusted legal advisor or chartered accountant before making any commitments, as investing in a doubtful project could result in massive financial losses.
• What Lies Ahead?
This explosive revelation is just the tip of the iceberg. Sprouts will continue to investigate and expose the deeper layers of this massive real estate scandal. Stay tuned for our next detailed report, where we will uncover more shocking details about the financial and legal violations committed by these developers.