Mumbai: The Economic Offences Wing (EOW) of the city police has launched a probe into the alleged Rs 42.96-crore fraud involving the redevelopment project of four buildings at Chinchpokli in Parel, in which a developer, its directors, a financial institute, banks and others are accused of illegally selling rehabilitation flats and raising huge loans against them.An FIR has been registered against Siddhivinayak Construction and its three directors and 21 others, including a few banks, under various sections of BNS and the Maharashtra Ownership Flats Act (MOFA), 1963.The complaint was filed by Pradeep Sawant, secretary of Shrimotanka Tenants Co-operative Housing Society. According to the complaint, the redevelopment of Shri Krishna Niwas, Kashinath Building, Mogre House and Tambawala Building was undertaken by Siddhivinayak Construction Pvt Ltd under a 2007 development agreement.The society alleges that the developer and its directors—Sachin Madhukar Khanolkar, Bindiya Sachin Khanolkar and Abhijit Vasantrao Kabir—sold several flats earmarked for rehabilitation to third parties without the consent of the tenants or the society.The complaint further alleges that financial institutions sanctioned loans totalling Rs 37.80 crore against 33 rehabilitation flats and three reserved areas, despite the properties being earmarked for existing tenants. The society has named several banks and financial institutions.The complainant has alleged that the developer also failed to pay around Rs 2.8 crore in transitional rent between 2014 and 2017 and approximately Rs 2.36 crore towards property tax, water bills and BMC-related dues, which society members allegedly paid.One of the allegations concerns flat number 704, which was earmarked for tenant Amogh Malvankar. The complaint states that the flat was allegedly sold multiple times and subsequently mortgaged to secure a loan of approximately Rs 80.91 lakh. Following default, the lender allegedly took physical possession of the premises, prompting Malvankar to approach the Debt Recovery Tribunal.The complaint also alleges that the developer benefited from FSI/TDR worth around Rs 15 crore arising from the redevelopment project. According to the complainant, the alleged irregularities, including the sale and mortgaging of rehabilitation premises, resulted in an overall loss of approximately Rs 42.96 crore to the tenants and the society.The matter was initially brought before the Mazgaon court following directions of the Bombay high court under Section 175(3) of the Bharatiya Nagarik Suraksha Sanhita. The court subsequently directed Kalachowki police station to register a case and investigate. The matter was later transferred to the EOW for further investigation.
