MHADA-MCGM Nexus Fuels Massive Redevelopment Scam
• Fake Names, Real Fraud: Shagun Realty Under Fire
• Krishvi Tower or Krishvi Escape? Scam Behind the Names
• Illegal Demolition: MHADA’s Dirty Role
Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
Sprouts News Exclusive
Contact: +91 9322755098
Shagun Realty, in collusion with corrupt MHADA and MCGM officials, allegedly executed a ₹1500 crore redevelopment scam in Fanaswadi, South Mumbai. The firm used multiple fake names, forged documents, and illegal demolitions to mislead tenants, investors, and regulators. Sprouts News Investigation Team (SIT) demands an independent probe into the massive fraud.
Fanaswadi Redevelopment Turns Into One of Mumbai’s Most Brazen Scams
In what is being called the biggest redevelopment scandal in South Mumbai, real estate developer Shagun Realty—operating under various aliases—has allegedly carried out fraudulent activities in collusion with corrupt officials from MHADA and MCGM. The project, located at C.S. No. 2255 in Fanaswadi/Thakurdwar, ‘C’ Ward, has become the epicenter of a high-level scam involving name manipulation, illegal demolitions, fake permissions, and large-scale bribery.
According to documents and sources accessed by the Sprouts News Investigation Team (SIT), Shagun Realty changed its legal identity in September 2018 to “Shagun Bluekey Realty” solely for registration under MahaRERA, while continuing all transactions and correspondences with MHADA and MCGM under the original name. This deliberate dual identity was allegedly aimed at evading Income Tax, GST regulations, and deceiving government departments.
Even as late as January 2024, official NOCs and permissions—including MHADA approvals, IOD (Intimation of Disapproval), and Commencement Certificates (CC)—were issued in the name of “Shagun Realty”, despite MahaRERA recognizing “Shagun Bluekey Realty” as the legal entity. The development has been marketed under multiple names including Krishvi Escape, Mirai Avinya, and Krishvi Tower, further confusing authorities, tenants, and potential investors.
Contents
MHADA-MCGM Nexus Fuels Massive Redevelopment Scam• Fake Names, Real Fraud: Shagun Realty Under Fire• Krishvi Tower or Krishvi Escape? Scam Behind the Names• Illegal Demolition: MHADA’s Dirty RoleFanaswadi Redevelopment Turns Into One of Mumbai’s Most Brazen ScamsMHADA Issued Repeated NOCs Despite Reservation, Cancelled Land StatusIllegal Demolition and Police-Free Eviction Spark Legal OutrageAlso Read: ₹500 Cr Jail Scam Rocks Maharashtra: Politicians, Cops Accused.Fraudulent Project Branding to Mislead Authorities and BuyersSIT Insight: Deep Nexus of Bureaucracy and Builder Exploiting Loopholes
MHADA Issued Repeated NOCs Despite Reservation, Cancelled Land Status
The scam traces its roots back to 2008 when Shagun Realty purchased the land from the Nayak family for ₹5.25 crore. However, the payment reportedly came from an invalid bank account, raising serious financial irregularity concerns. Despite the land being under retail market reservation by MCGM, MHADA issued the first NOC in 2009—a decision allegedly influenced by heavy bribes paid to civic officials.
Over the years, NOCs were repeatedly extended: from 2013 to 2017, then to 2020, 2022, and finally 2024. At one point, the NOC was even cancelled—only to be reissued under mysterious circumstances known only to “the most corrupt bureaucrats” in MHADA, according to sources connected to the case.
MCGM sanctioned the first IOD in 2012, again under questionable conditions. The entire development was done while side-stepping existing High Court orders and without following the legal provisions under MHADA Act, Section 95-A, which mandates tenant agreements and protection during redevelopment.
Illegal Demolition and Police-Free Eviction Spark Legal Outrage
One of the most egregious actions occurred on September 30, 2014, when MHADA officials, allegedly under the influence of Shagun Realty, illegally demolished Office No. 10 in Cess Building No.1, which was occupied by Bhupendra C. Doshi. This was done without police protection, in the early hours of the morning, violating High Court orders that specifically barred demolition without valid Temporary Alternate Accommodation (TAA) agreements.
The Sprouts News Investigation Team (SIT) has verified that MHADA misled the High Court by submitting forged TAA documents and falsely claiming that Doshi had already shifted to alternate accommodation. In reality, the demolition occurred with no notice, and Doshi’s belongings were allegedly stolen from the premises with the full support of MHADA staff and contractors associated with Shagun Realty.
The names of bureaucrats involved include Executive Engineer Dinkar Bhujbal and Assistant Engineer Mr. Tripathi, who are believed to have acted under the direction of developer Suresh Gheverchand Seth, his son Shrenik Suresh Seth, and their team.
Also Read: ₹500 Cr Jail Scam Rocks Maharashtra: Politicians, Cops Accused.
Fraudulent Project Branding to Mislead Authorities and Buyers
To further mislead tenants, investors, and regulatory authorities, Shagun Realty used multiple trade names at various stages of the project:
•“Krishvi Escape”: Listed in MahaRERA for sales
•“Mirai Avinya”: Promoted in ads claiming 15 years of experience and 4 completed projects
•“Krishvi Tower”: Mentioned in PAA (Permanent Alternate Accommodation) agreements
•“Shagun Group”: Used in advertisements to woo investors
•False Claims: Advertised as 5th project with 15 years of experience while showing in MahaRERA as 1st project
These deliberate misrepresentations helped evade scrutiny from Maharashtra Pollution Control Board, Environment Department, Income Tax, GST, MHADA, and MCGM.
The Sprouts SIT demands that MHADA, MCGM, MAHARERA, GST, and Income Tax Department clarify which of these entities and names are legally valid, and initiate action for potential fraud, tax evasion, and violation of redevelopment laws.
SIT Insight: Deep Nexus of Bureaucracy and Builder Exploiting Loopholes
This case illustrates how urban redevelopment in Mumbai is being manipulated through bureaucratic complicity, fraudulent paperwork, and unchecked corruption. The Fanaswadi project, under various names and masks, reflects a systemic failure of accountability across state departments.
The Sprouts News Investigation Team (SIT) has collected substantial documentary evidence and testimony from affected tenants and is preparing to approach higher authorities for an independent probe, possibly invoking the CBI and ED. The case serves as a glaring example of how the nexus between corrupt officials and developers continues to flourish despite regulatory frameworks.
SELLING OF TRANSIT CAMPS
MASTER LIST HOUSING SCAMS ALLOTMENT TO HIGH VALUE AREA PREMSIES
SCAM IN REPAIR MAINTENANCES OF TRANSIT CAMPS OFFICER’S CONTRACTOR BROKERS NAXUS
EXECUTIVE ENGINEER DEPUTY WORK FOR BUILDER LOBBY AND FAVOUR BUILDER TO EVICT TENANTS AS WELL AS MISLEAD
CHIEF OFFCIER VPCEO LEGAL DEPARTMENT ARE SILNET NO REPLY NO HEARNG NO ORDEER NO ACTIONS AFTER MAKING VARIOUS COMPLAINST PERIOD 201 TO 2025