Mumbai Police Arrest Kolhapur Developer in ₹55 Crore Versova Redevelopment Scam

Versova redevelopment scam investigators have arrested a Kolhapur-based developer for his alleged role in a ₹55 crore fraud linked to the redevelopment of a residential building in Mumbai’s Andheri suburb.

Officials from the Economic Offences Wing (EOW) of Mumbai Police said the accused, Amrut Uttam Mahendrakar (34) from Ichalkaranji in Kolhapur district, was taken into custody for allegedly assisting in preparing forged documents and enabling the illegal sale and mortgage of flats meant for members of a cooperative housing society.

The case centres on a redevelopment project in Versova involving Zakaria Aghadi Nagar No. 3 Co-operative Housing Society, an old residential building that housed 13 families. In 2015, the society had appointed a developer to reconstruct the building under a redevelopment agreement. Residents were assured that they would receive newly built flats within a specified timeframe once the project was completed.

However, according to police investigators, the redevelopment plan turned into a large-scale financial fraud.

Flats Sold and Mortgaged Without Owners’ Consent

The complaint was filed by Meena Singh Thilon (71), a member associated with the housing society. She alleged that during the course of the project, residents discovered that several flats that were supposed to be allotted to them under the Permanent Alternate Accommodation Agreement (PAAA) had been mortgaged to financial institutions.

Investigators said some of these flats were also sold to third parties without the knowledge or consent of the original residents.

Authorities believe the accused and their associates prepared forged agreements and manipulated official documentation to make the transactions appear legitimate. Police sources said fake agreements for sale were allegedly created, and signatures of regulatory officials were forged to secure loans from multiple banks.

The fraudulent documentation reportedly included counterfeit stamps and fabricated approvals to convince financial institutions to release large sums of money against the mortgaged flats.

Second Arrest in the Case

Mahendrakar is the second person arrested in connection with the case. In August last year, police had arrested Amarjit Shukla, the owner of the development firm involved in the project.

Investigators suspect that Mahendrakar played a supporting role in the alleged conspiracy by helping prepare forged paperwork and facilitating transactions linked to the illegal mortgage and sale of flats.

The EOW’s Housing Unit is continuing its probe to determine how the forged documentation was created and whether additional individuals were involved in the scheme.

Impact on Residents

For the society’s residents, the discovery came as a shock. Families who had vacated their old homes expecting redeveloped apartments now face uncertainty about the legal status of the properties promised to them.

Legal experts note that redevelopment projects in Mumbai often involve complex agreements between developers, residents, and financial institutions. When such agreements are manipulated, homeowners can find themselves entangled in lengthy legal disputes over ownership and possession.

Investigation Continues

Officials said investigators are examining financial records, loan documents, and property agreements linked to the project to trace the movement of funds and identify other possible beneficiaries of the alleged fraud.

If proven, the case could become one of the more significant redevelopment-related frauds in Mumbai in recent years, highlighting the risks faced by housing societies during large redevelopment deals.

Authorities indicated that further arrests are possible as the investigation progresses and more details about the alleged ₹55 crore scam come to light.