IPS Officer’s Husband Held in ₹24.78 Cr Housing Scam
• Fake Govt Quota Flats Used to Dupe Buyers
• Chavan’s Real Estate Fraud Spans Mumbai, Thane, Pune
Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 932275509
Sprouts News Exclusive
Contact: +91 932275509
Purushottam Chavan, husband of IPS officer Rashmi Karandikar, was arrested by Mumbai Police’s EOW for allegedly defrauding 20 people of ₹24.78 crore by falsely promising government quota flats. Already in custody for a ₹263-crore tax scam, Chavan faces multiple charges. IPS Karandikar has filed for divorce amid ongoing investigations.
Contents
IPS Officer’s Husband Held in ₹24.78 Cr Housing Scam• Fake Govt Quota Flats Used to Dupe Buyers• Chavan’s Real Estate Fraud Spans Mumbai, Thane, PuneReal Estate Fraud Using Government Quota Flats as BaitUrban Housing Scam Expands: ₹7.42 Crore Cheating Case in Nashik SurfacesWife IPS Officer Interrogated by EOW Amid Divorce ProceedingsAlso Read: Cocoon Hospital Fined ₹25L for Fatal Swine Flu Negligence.Legal Charges Filed Under IPC for Fraud and Forgery
The Economic Offences Wing (EOW) of Mumbai Police has arrested Purushottam Chavan, husband of senior IPS officer Rashmi Karandikar, in connection with a ₹24.78 crore real estate scam. The arrest was made following allegations that Chavan and 11 associates fraudulently collected funds from 20 individuals under the false promise of flats reserved under the government quota in Mumbai, Thane, and Pune.
The EOW, which had been investigating the case since February, confirmed that the fraudulent transactions occurred between March 2015 and April 2024. Chavan allegedly misused his influence and presented himself as having access to government-allotted properties at concessional rates. He is accused of providing fake documentation and misleading agreements to prospective buyers.
Chavan, who was already in judicial custody in a separate ₹263-crore Income Tax Refund (ITR) scam, has now been booked under multiple sections of the Indian Penal Code for cheating, impersonation, and conspiracy.
Real Estate Fraud Using Government Quota Flats as Bait
According to the investigation, Chavan’s primary method involved offering prime-location flats in upscale areas like Prabhadevi at significantly discounted prices. One of the complainants, Kedar Degwekar—a businessman from Sion—was promised a ₹7–7.5 crore 3BHK apartment for just ₹3.5 crore under the pretext of it being a government quota flat. Based on this assurance, he transferred a substantial sum to Chavan’s account.
The flats were never delivered. Instead, forged “Agreement for Sale” documents were issued, falsely naming several accomplices as government officers. These included individuals impersonating officials and those involved in forging official documents.
An ED raid on Chavan’s Colaba residence led to the discovery of transactional records and documents confirming similar fraudulent dealings with at least 19 other victims. Combined, the total cheated amount reached ₹24.78 crore. The Sprouts News Team has verified that these fake documents were critical in creating a false sense of legitimacy among buyers.
Urban Housing Scam Expands: ₹7.42 Crore Cheating Case in Nashik Surfaces
Apart from the ₹24.78 crore real estate scam, a second FIR has been registered in which Chavan is accused of cheating a Surat-based businessman out of ₹7.42 crore. He allegedly offered plots under the government quota and falsely claimed that he could secure T-shirt supply contracts with the Maharashtra Police Academy in Nashik. These promises were never fulfilled, pointing to a recurring pattern of fraudulent activity.
Chavan was also arrested recently by Gujarat police in connection with another cheating case, indicating the wide scope of his criminal activities. His modus operandi—leveraging claimed connections to government institutions—was consistent across multiple fraud schemes, all based on trust breaches in high-value urban development transactions.
Wife IPS Officer Interrogated by EOW Amid Divorce Proceedings
EOW officials also questioned IPS officer Rashmi Karandikar as part of the investigation. Authorities sought details on ₹3 crore allegedly transferred to her ICICI Bank account by Chavan. While she has not been named an accused, her proximity to the transactions warranted interrogation.
Karandikar has since filed for divorce, citing mental cruelty, financial harassment, her husband’s bipolar disorder, and undisclosed financial dealings. According to court records and Sprouts News Team sources, the divorce petition was filed in 2023. The officer has appeared once before the EOW but has not been linked directly to the fraud.
Also Read: Cocoon Hospital Fined ₹25L for Fatal Swine Flu Negligence.
Legal Charges Filed Under IPC for Fraud and Forgery
Chavan and his co-accused now face charges under IPC Sections 420 (cheating), 419 (impersonation), 465, 467, 468, 471 (forgery and use of forged documents), and 120(B) (criminal conspiracy). The EOW continues to investigate the scale and depth of the fraud, including roles played by other suspects like Prasad Desai, Sanjay Patil, Ganesh Patil, Deepak More, N.D. Nirmale, Govind Sawant, Shashank Limaye, and Yashwant Pawar.
All were either direct accomplices or provided indirect assistance through document creation or impersonation. EOW is also probing the extent to which forged identities were used to gain buyer trust, particularly in lucrative areas targeted for supposed redevelopment under government schemes.
The scam has raised serious questions about verification protocols in government housing projects and the vulnerability of urban investors to fraudulent offers disguised as state-sponsored opportunities. As investigations continue, Sprouts News Team will follow developments closely to track policy implications and further arrests in what appears to be one of the city’s most elaborate real estate scams in recent years.
