Mumbai’s Backyard Scam: 448 Families Trapped
• Hope on Hold: 14 Years of Betrayal
• 85 Dead, 700 Cheated: One Builder, Many Victims
Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
Sprouts News Exclusive
Contact: +91 9322755098
For 14 years, 448 families from LIG-1 Society in Kalyan have awaited their redeveloped homes from Patel Group & Co. At least 85 people have died during this wait. Over 250 new buyers were also defrauded. Despite legal action, justice remains elusive. Sprouts SIT demands urgent government intervention and accountability.
Contents
Mumbai’s Backyard Scam: 448 Families Trapped• Hope on Hold: 14 Years of Betrayal• 85 Dead, 700 Cheated: One Builder, Many Victims14 Years, No Home: Mumbai-Area Families Caught in Builder’s BetrayalBuilder Accused of Fraud, Illegal Tie-Ups, and Stalled WorkNew Buyers Also Trapped: 250 Families DefraudedA Wider Scam: 5,000 Families Affected in One Area Alone?Builder’s Response: Blame Shift and DelaysUrgent Government Intervention Needed
14 Years, No Home: Mumbai-Area Families Caught in Builder’s Betrayal
In a shocking case of prolonged redevelopment fraud, 448 families from LIG-1 Konkan Vasahat Co-operative Housing Society, near Birla College in Kalyan (West), have been waiting since 2010 for the return of their homes. Fourteen years ago, they handed over their redevelopment rights to Patel Group & Co., led by builder Hasmukh Patel. But instead of new homes, residents have faced trauma, death, debt, and despair.
According to the society, at least 85 families have lost loved ones during this unending wait. Many sold their jewellery to survive, children’s education was disrupted, and financial stress turned their lives into a burden. The project remains incomplete, while their hope has been silently buried under half-constructed buildings.
Builder Accused of Fraud, Illegal Tie-Ups, and Stalled Work
Society Secretary Santosh Pote alleges that from the beginning, the builder’s intentions were questionable. Despite a formal agreement with the society, no individual agreements were signed with residents, violating redevelopment norms. Worse, the builder is accused of illegally bringing in another builder, Seth Group, into the project without society consent—allegedly in collusion with some former committee members and local officials.
The Sprouts News Investigation Team (SIT) learned that in 2015, Patel raised a loan of nearly ₹200 crore from DHFL in the project’s name. However, actual construction work was never completed. Rental compensation to residents stopped by 2015, and by 2017, it was completely withdrawn, leaving residents to fend for themselves.
Despite a court-appointed receiver following legal proceedings in 2018, Patel reportedly manipulated the situation and regained influence over the project, further delaying redevelopment. Residents now say they’ve only seen whitewash on incomplete buildings—while their dreams were erased.
New Buyers Also Trapped: 250 Families Defrauded
Beyond the original 448 redeveloped homes, the project also included 664 new flats for sale. Nearly 250 buyers, many of them first-time homeowners, invested their life savings or took loans, only to receive neither flats nor refunds. Some buildings were partially constructed up to five floors—then demolished without explanation.
These new buyers have now united under the Patel Colossus Foundation, led by President Suraj Kuhikar and Convenor Jayesh Kothawade. They allege that builder Hasmukh Patel collected ₹40–50 lakh per flat from each buyer, amounting to crores of rupees, but failed to deliver possession. Legal complaints have been filed with RERA, MHADA, EOW, courts, and police, but affected families say they have received only “dates after dates” with no justice.
The Sprouts News Investigation Team (SIT) notes that this is a clear pattern of financial and psychological exploitation, affecting both original society members and new flat buyers alike.
A Wider Scam: 5,000 Families Affected in One Area Alone?
Local RTI activist Vinod Tiwari has raised alarming questions about the broader scale of redevelopment scams in the region. According to his estimates, over 4,500 to 5,000 families in the Birla College vicinity of Kalyan West have fallen victim to similar frauds by developers. This raises serious concerns about the complicity or negligence of local authorities and political leadership, who have failed to protect citizens despite multiple warnings and legal interventions.
This pattern of redevelopment-linked fraud highlights a systemic failure that urgently requires a comprehensive state-level probe, accountability of errant officials, and cancellation of rogue builders’ licenses.
Builder’s Response: Blame Shift and Delays
When approached by Sprouts News, builder Hasmukh Patel claimed he is “trying to complete the project” and blamed delays on the court-appointed receiver and pending environmental clearances. However, residents and buyers argue that other nearby projects have been completed in the same time frame—exposing the builder’s excuses as deliberate stalling tactics.
The Sprouts News Investigation Team (SIT) finds these justifications hollow, especially when lives have been lost, and over 700 families have been financially ruined. With court orders, police complaints, and thousands of lives at stake, the builder’s repeated delays suggest a well-orchestrated cycle of delay, deflection, and deceit.
Urgent Government Intervention Needed
This case is not just a civil dispute—it’s a humanitarian crisis. The Maharashtra government must step in to enforce immediate relief for victims, appoint an empowered authority to take over the stalled project, and initiate criminal proceedings against those responsible. Affected families—some now homeless, others in rented homes without compensation—deserve justice, transparency, and accountability.
Summary Points:
•448 families from LIG-1 Society waiting 14 years for homes
•85 deaths reported among displaced families during this period
•₹200 crore loan taken by the builder; work remains incomplete
•250 new buyers defrauded of ₹40–50 lakh each
•Legal complaints filed with RERA, MHADA, EOW, and courts with little action
In this Previous Managing Committee Members are Also Involved, as The Loan taken by Hasmukh Patel & Co. was
Co- Signed by Chairman, Khandekar in the Mortgage Deed, and in Presence infront of Sub/Joint/Additional – Registrar’S
With Resolution passed themselves i.e by Managing Committee Members, without the General Body Meeting, the same High lighted after 3-4 Years,, Rest The Agreement For Sale Couldn’t be Completed without the Co- Signature of Authorised Members of the Managing Committee Members, of the LIG-1 Konkan CO-OP HSG SOCIETY LTD’S