Poddar Rivera Housing Scam: ₹100 Crore Fraud in Kalyan.

Poddar Rivera Scam: ₹100 Crore Fraud, Broken Promises

• MahaRERA Project in Chaos: Illegal Land Deal Halts Kalyan Homes

•Poddar Rivera Regulatory Failure: MahaRERA Project Stalled Despite ₹100 Crore Collection

• Illegal Land Deal Halts Kalyan Homes

The Poddar Rivera housing project in Kalyan is stalled due to an illegal land sale by the builder, who collected over ₹100 crores from 400+ homebuyers. Despite a stay order from the Charity Commissioner, a school is being built on the disputed plot, leaving investors in financial ruin. With MahaRERA under scrutiny for failing to act, this scandal exposes deep cracks in real estate regulation and leaves hundreds of families financially and emotionally shattered.

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MahaRERA Faces Scrutiny as ₹100 Crore Poddar Rivera Scam Leaves 400+ Homebuyers Stranded in Kalyan

A major housing project in Kalyan, promoted by Poddar Housing and Development Ltd., has become the epicenter of a massive alleged financial scam, leaving over 400 middle-class families in financial ruin and raising serious questions about land title fraud and regulatory enforcement. The “Poddar Rivera” project, registered with MahaRERA, has been stalled for three years after it was revealed the construction land was illegally sold by a trustee of a charitable trust. The Sprouts News Investigation Team (SIT) has reviewed official complaints and documents that allege the builder collected over ₹100 crores from buyers while simultaneously mortgaging the disputed land to multiple financial institutions.

Despite a stay order from the Charity Commissioner and abeyance status from MahaRERA, our investigation confirms that a separate “Poddar School and College” building is being constructed day and night on the same contested plot. This brazen act, alleged to be in contempt of court, is reportedly being ignored by local authorities including KDMC and MHADA, deepening the crisis for investors who have poured their life savings into the defunct project.

Project Launch and the Genesis of the Alleged Fraud

The Poddar Rivera project was launched in 2019 on Kalyan-Murbad Road, promising affordable housing under the PMAY scheme. Spread over 18.8 acres, the project was approved by MahaRERA (Registration No. P51700023508) and received a Commencement Certificate from MHADA, granting it an aura of legitimacy. The developer, Poddar Housing and Development Ltd., projected a vision of 1,284 modern apartments, attracting hundreds of buyers with the promise of possession by 2023.

Buyers, including senior citizens and young couples, invested sums ranging from ₹20-30 lakhs per unit, often leveraging lifelong savings or securing bank loans. However, as the Sprouts News Investigation Team found, the very foundation of the project was allegedly rotten. Construction ground to a complete halt in 2022 when a title dispute emerged, revealing that the land sale was never legally authorized by the rightful owner, a public trust.

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A Web of Financial Entanglements and Title Disputes

Documents accessed by SIT reveal a complex web of financial dealings that suggest severe misuse of funds. While the builder collected approximately ₹100 crores from homebuyers, they also mortgaged the disputed land to Vistara ITCL (India) for ₹100 crores and to STCI Finance Limited for ₹75 crores. An additional loan of ₹150 crores was secured from HDFC Bank.

This fundraising spree occurred despite the developer allegedly being aware of the clouded title. The Charity Commissioner, Mumbai, subsequently stayed all construction activity on the land, affirming the sale’s illegality. MahaRERA was forced to place the project in abeyance, freezing the builder’s bank accounts and prohibiting further sales. Yet, by then, immense public funds had already been diverted into a project on legally untenable land.

Poddar Rivera Scam: Contempt of Court and Regulatory Inaction

In a shocking turn of events, homebuyers and local sources report that while their residential towers stand as empty shells, a massive school and college building is being actively constructed on the same disputed plot. This constitutes a potential violation of the Charity Commissioner’s stay order and contempt of court.

The continued construction has sparked allegations of gross regulatory inertia against the Kalyan-Dombivli Municipal Corporation (KDMC), Ulhasnagar Municipal Corporation, and MHADA, who hold the authority to halt unauthorized construction. This inaction has left homebuyers questioning the effectiveness of the entire regulatory ecosystem designed to protect them.

The Human Cost: Lives Left in Limbo

“For buyers like Yogesh Wadhwani, Sandeep Mishra, Raghunandan Mishra, Naresh Bhatia and Hiro Rajai, a 60-year-old resident of Ulhasnagar, the dream of a home has transformed into a nightmare of financial distress. Having paid over lakhs of Rupees for booking a flat in Poddar Rivera, These buyers are now facing mounting EMIs with nothing to show for it. Their story is one of hundreds”.

“The builder organized parties and site events to pacify us with false promises even after they knew the project was illegal,” a spokesperson for the buyers’ group told Sprouts SIT. “This is a deliberate case of cheating and criminal breach of trust. We are not just fighting for a refund; we are fighting for justice and accountability.”

Formal Complaints and the Road Ahead

Aggrieved buyers have filed formal complaints under Section 31 of the RERA Act, 2016, seeking a full refund with interest at 10.75% per annum and compensation for mental harassment and financial loss. They have also lodged FIRs for cheating and fraud and pushed for an EOW investigation into the misuse of funds.

The case now presents a critical test for MahaRERA’s enforcement capabilities. Homebuyers are demanding immediate penal action against the developer under Sections 61 and 63 of the RERA Act and have threatened to approach the Bombay High Court if no actionable resolution is provided. The outcome will set a significant precedent for tackling real estate fraud and enforcing accountability in India’s regulated housing market.