Mumbai Police Book Borivali Builder for ₹40 Lakh Real Estate Fraud.

Mumbai Police Book Builder in ₹40L Fraud Case

• Investment Promise Turns Into Nightmare

• Dadar FIR Reveals Builder’s Double-Selling Scheme

• Trader Loses ₹37.9L in Borivali Project Scam

Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098

Dadar Police booked Borivali builder Arvind Parab for cheating a trader of ₹37.9 lakh in a fake real estate investment scheme. Promised commercial shops in a Borivali project, the accused diverted funds and offered an already-sold office. A case under BNS 318(4) is registered.

The Dadar Police have initiated a criminal investigation against Borivali-based builder Arvind Parshuram Parab, 60, for allegedly orchestrating a sophisticated real estate investment scam that defrauded a share market trader of ₹37.90 lakh. The accused, proprietor of A.P. Developers, is charged under Section 318(4) of the Bharatiya Nyaya Sanhita (BNS) for cheating and criminal breach of trust. The case highlights growing concerns over fraudulent real estate practices in the Mumbai Metropolitan Region.

According to the First Information Report (FIR), the complainant, Jitesh Banwari Bhargav, a 43-year-old Versova resident, was approached by Parab—a known associate of his father—in April 2024. Parab promoted a proposed commercial building project in Borivali, seeking an investment of ₹40 lakh in exchange for 12 retail shops upon completion. A Memorandum of Understanding (MoU) was formally executed on April 15, 2024.

Following the agreement, Bhargav transferred ₹37.50 lakh via RTGS from his HDFC account to Parab’s IDBI Bank account. The builder assured a three-month project commencement or a full refund with interest, even offering his Dadar office as collateral. The Sprouts News Special Investigation Team (SIT) notes that such promises are common tactics in investment frauds.

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Project Stalls, Additional Funds Diverted

When the project failed to launch within the stipulated period, Parab requested an additional ₹8 lakh from the investor, citing unforeseen operational expenses. In response to mounting inquiries about the delay, Parab proposed an alternate settlement: the sale of his commercial office in Dadar West, valued at ₹1 crore.

A second MoU was signed on July 15, 2024, formalizing this new agreement. Parab further collected ₹90,000 for purported stamp duty charges and an additional ₹1.5 lakh to clear outstanding maintenance fees with the Laxmi Commercial Premises Society. These payments were made in good faith by Bhargav, anticipating the property transfer.

Fraud Exposed: Property Already Sold

In March 2025, Parab prepared a draft Agreement for Sale but repeatedly avoided its registration. Suspicious of deceit, Bhargav conducted an online title verification and uncovered that the Dadar office had already been sold to another buyer, Shyamsundar Gupta, on February 13, 2025—weeks before the draft agreement was even created.

Upon confrontation, Parab issued cheques totaling ₹47.50 lakh, but all instruments were dishonored due to a blocked account. Only ₹10 lakh was eventually returned by the builder’s son, Devdutt Parab, after a legal notice was served. The remaining funds have not been repaid, prompting the victim to approach the police.

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Legal Action Underway as Probe Intensifies

The Dadar Police registered a formal case under BNS Section 318(4), which pertains to cheating and dishonestly inducing delivery of property. Investigators are examining bank transactions, MoU authenticity, and prior property records to determine the full scope of the fraud. The accused may face additional charges for document forgery and criminal conspiracy.

This case underscores critical vulnerabilities in real estate investment protocols, especially involving pre-launch projects and private agreements. The Sprouts News SIT has consistently reported on the rise in financial frauds targeting high-net-worth individuals in metropolitan areas, urging stricter due diligence.

The Sprouts News Special Investigation Team recommends that potential investors verify project approvals with the Maharashtra Real Estate Regulatory Authority (MahaRERA) and conduct independent legal checks on property titles before transferring funds. As the probe continues, stakeholders await further developments in this unfolding financial scandal.