Mumbai based developer arrested in a Rs 40 crore housing scam

The Economic Offences Wing (EOW) of Mumbai police arrested developer Jayesh Tanna, 56 in a third housing fraud case involving cheating of 28 home buyers to the tune of Rs 40 crore. The accused developer is alleged to have defrauded hundreds of home buyers and is, in all, facing ten FIRs, including three by EOW.
The current case, in which the tainted developer has been arrested, pertains to a housing fraud related to the Goregaon Pearl Cooperative Housing Society in Sidharth Nagar. According to the EOW, members of the Goregaon Flat Buyers Welfare Association in October this year had filed a complaint against directors of M/s Sai Siddhi Developers (SSD Ecstatic Pvt Ltd) Jayesh Tanna, Deep Tanna, Vivek Jayesh Tanna and unidentified members of Goregaon Pearl Cooperative Housing Society alleging fraud.
The police complaint alleged that the developer was building a housing project on CTS no 27, Siddharth Nagar Goregaon (West), and in 2012, sold flats to 28 buyers and accepted Rs 40 crore from them. The developer registered a sale agreement and promised to deliver the flats to them by December 2023. However, till date, he has not given possession to the home buyers. The accused developer used the home buyers’ money for some other purpose and has thus defrauded them, alleged the complaint.
The agency’s initial investigations revealed that Tanna allegedly diverted home buyers’ funds to his personal bank accounts for wrongful gains. He also allegedly failed to pay the premium price of FSI sanctioned on the said project by MHADA, because of which the said project is lying incomplete.
Earlier last week, he and his family members were arrested on allegations of cheating a flat buyer to the tune of Rs 3.30 crore by selling the promised flat in Andheri to a third party. Vinod Punjabi, a businessman residing in Andheri, filed the complaint, claiming that in 2014 he approached Jayesh Tanna's company for a 3 BHK flat in their project near Bhavan's college in Andheri West. The flat on the 9th floor, measuring approximately 1,200 square feet, was booked by Punjabi with the expectation of completion by 2017. However, the project faced delays, and Punjabi alleged that the developer did not fulfil contractual obligations.
As per the complaint, the developer also accepted Rs 17 lakh from Punjabi for stamp duty but failed to register the agreement or pay the necessary stamp duty. To Punjabi's dismay, he later discovered that the promised flat had already been sold to a third party without his knowledge or consent. This alleged act of selling the same property to multiple buyers constitutes a serious breach of trust and contractual obligations, leading to criminal charges against the builder and his family members.
This incident adds to the growing list of legal troubles for Jayesh Tanna, who faces similar accusations in multiple cases across various locations in Mumbai, including Borivali, Goregaon, Kandivli, and Andheri. Besides three FIRs by EOW, Tanna is facing five FIRs by Kandivali police station and two FIRs by DN Nagar police station. He was first arrested by EOW in May this year.
The Mumbai police's proactive approach in registering and pursuing these cases indicates a commitment to addressing potential malpractices in the real estate industry, aiming to protect the interests of homebuyers and maintain the integrity of property transactions. As legal proceedings unfold, stakeholders will closely watch the outcomes, hoping for a resolution that serves justice and sets a precedent for ethical conduct in the real estate sector.

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Mumbai based developer arrested in a Rs 40 crore housing scam

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