Navi Mumbai Homebuyers Flag Decades-Long Milestone Housing Project Scam.

Milestone Housing Project Scam in Navi Mumbai: Homebuyers Allege Fraud, Illegal Demolition, and Non-Refunds by Rahul Timbadia

Homebuyers in Navi Mumbai have renewed allegations of fraud in the Milestone housing project, allege illegal demolition, non-refunds and prolonged fraud in the Milestone housing project by developer Rahul Maganlal Timbadia, his son Parth Timbadia, brother Kartik Timbadia and others, exposing substandard construction, suppressed court orders, and alleged misuse of investor funds, raising serious concerns over regulatory failure and accountability in Navi Mumbai real estate.

Milestone Housing Scam allegations have resurfaced in Navi Mumbai, with homebuyers accusing developer Rahul Maganlal Timbadia, Parth Rahul Timbadia, Kartik Maganlal Timbadia of fraud by deception, illegal demolition, non-refunds, and prolonged legal evasion and perjury spanning nearly three decades.

Affected buyers claim the Milestone housing project involved deliberate delays, substandard construction, suppressed court orders, and criminal breach of trust, raising serious concerns about regulatory failure and builder accountability in Maharashtra.

Homebuyers who booked flats and row houses during the under-construction phase allege their investments were systematically misused, while the underlying land and structures were later sold to another developer without intimation and lawful consent.

Several buyers state that lifelong savings were invested based on written assurances of timely possession, quality construction, and legal compliance-assurances they allege were never honoured by the developer.

One complainant, whose identity is protected, said bookings were made in 1995 with possession promised by March 1997, but actual possession occurred only in 2006.

The buyer stated that full payments were completed strictly through bank cheques by 1999, in line with the builder’s official payment schedule and documented receipts.

At the time of booking, some buyers were in their thirties and trusted assurances given by Rahul Timbadia regarding completion timelines and promised residential amenities.

According to records reviewed by investigators, construction delays extended nearly ten years, while the developer neither completed the project nor offered refunds despite receiving full consideration.

In 1999, Timbadia allegedly offered a buyer who had completed payments an alternative flat of identical carpet area, but incomplete external work and lacking basic amenities such as electricity, water supply, and legal occupancy readiness.

Facing financial pressure and limited legal awareness, the buyer accepted the substitute flat and completed registration, viewing the compromise as preferable to losing the entire investment.

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Related Article: Milestone Housing Scam Rocks Panvel Homebuyers.

Consumer Court Orders, Substandard Construction, and Suppressed Judgments

Court records reveal that construction quality was found to be substandard, a fact reportedly admitted by the developer during proceedings before competent consumer dispute redressal forums.

Multiple consumer court judgments in 2006 – 2007 directed Timbadia to refund buyers with interest, penalties and compensation but complainants allege these orders were deliberately concealed from other purchasers.

Buyers claim they were pressured to convince others to continue payments without disclosing ongoing litigation or adverse judicial findings on construction quality.

Several years later, after intermittent electricity and water connections were secured, buyers allege they were forced to re-register flats and surrender earlier registration documents.

Sprouts News legal experts say such actions raise serious concerns about document manipulation, ownership dilution, and unlawful alteration of registered property records.

In a shocking development, flats and row houses were allegedly demolished without prior notice while residents’ belongings remained inside the premises.

The land was subsequently sold to Proviso Builders, and a new residential structure reportedly now stands on the same plot where Milestone homes once existed.

Buyers allege this demolition amounted to criminal trespass, destruction of property, and unlawful asset stripping without consent or compensation.

Rahul Timbadia, linked to Milestone-branded entities in Ulwe and Vile Parle and LA Tim Metal & Industries Limited, has allegedly not refunded certain Indian and NRI buyers.

The complainant stated that a criminal court encouraged settlement, but the developer offered a negligible cash amount, allegedly unaccounted money, which was rejected.

Criminal Proceedings, Police Findings, and Wider Allegations

Buyers maintain all payments were made through cheques, with documentary proof submitted to police, including cheque copies and official receipts issued by the developer.

Timbadia later offered another alternative flat to an aggrieved buyer in a separate under-construction project, reportedly incomplete even up to plinth level, which was declined due to past experience.

Records indicate that six to seven buyers secured favourable consumer court judgments in 2007, strengthening allegations of systematic misconduct in the Milestone project.

Some buyers, including employees of Timbadia who had invested, reportedly received only small refunds after heavy deductions, raising questions about arbitrary settlement practices.

Non-Resident Indian investors allegedly remain unpaid, contradicting claims made in court, with Ketan Kakkad named among those disputing the developer’s statements.

A Sessions Court earlier quashed Timbadia’s anticipatory bail (Judgement dated January 5, 2016 by Alibag, Raigadh Sessions Hon. Judge Shri B. N. Kadam) but he later secured bail from the High Court (Bail Application number 210 and 228 of 2016) which ordered a reinvestigation by police authorities.

Police have since submitted reinvestigation reports highlighting substandard construction and illegal demolition, though the case continues to await judicial hearing.

The matter, monitored by the Sprouts News Special Investigation Team (SIT), underscores persistent enforcement gaps and delayed justice in real estate fraud cases.

A Consumer Court Complaint in Bandra Consumer Court against Rahul Timbadia and associates is due for hearing soon – Case number 202504230436.

Pattern of Alleged Deception Beyond Milestone Project

Investigative journalist Unmesh Gujarathi has also highlighted allegations linking Timbadia to the Panvel Mountain Land Scam involving 275 acres of protected forest land.

The land, classified as forest since 1952 within the Matheran Eco-Sensitive Zone, was allegedly illegally plotted and sold despite strict development prohibitions.

Investigations indicate the land passed through Vrindavan Horticultural Co-operative Society before being acquired by entities later linked to Adani Realty, raising due diligence concerns.

Authorities are urged to examine environmental violations, alleged FEMA breaches, and corporate governance failures connected to companies associated with the Timbadia family.

Activists and affected buyers continue to demand a comprehensive government inquiry, accountability, and stronger buyer protection mechanisms to prevent repeat real estate frauds.