Complaint filed with ED and SEBI regarding alleged misappropriation of funds, money laundering and deception of investors/general public exceeding Rs 275 Cr in an SRA Project
PIONEER EDGE NEWS SERVICE
Shah Housecon Private Limited (SHPL)—a company promoted by Mansukh Shah—appears to be embroiled in a major real estate scam involving the ‘Khot Dongri SRA Scheme’ in Malad East. It appears that the public listed entity, ‘B Right Group,’ is merely collecting funds from investors based solely on share valuation games. The full details of this case are as follows: Multiple memorandums of understanding (MOUs) were signed with various parties. SHPL entered into agreements with B Right Group, Royal Realtors, Jha Buildcon, Salasar Developer, Klassic Treasure Pvt Ltd, and others, collecting crores of rupees from each of them. This real estate company also stands accused of misappropriating funds. The company is alleged to have diverted funds for personal gain, leaving both investors and the slum-dwelling residents in the lurch.
Regarding the disputes and litigation surrounding this matter, Royal Realtors filed a commercial suit against SHPL in 2022, while Klassic Treasure Pvt Ltd lodged an FIR in 2026. SHPL neither allotted flats nor paid rent to many of the slum dwellers; instead, it sold the flats designated for them to other developers.
The Economic Offences Wing (EOW) is currently investigating this entire case, and formal cases have been registered against Mansukh Shah and Akash Shah.
Notably, FIR No 0861 (dated November 2025) has been registered against Sanjay Shah. This is being regarded as a significant instance of public fraud within the real estate sector—a deceptive scheme allegedly perpetrated by a public listed company, involving a sum amounting to Rs 275 crore. A complaint has been filed regarding alleged financial fraud exceeding Rs 275 crore, misappropriation of funds, money laundering and cheating of investors and the general public in connection with an SRA project located at Khot Dongri, Malad East, Mumbai – 400097. This complaint is directed against Sanjay N Shah of the B Right Group (B Right Real Estate Limited/B Right Realestate Ventures LLP); Mansukh Shah and Akash M Shah of M/s Shah Housecon Pvt Ltd; and Premji Shah of M/s Royal Realtors Landmark Pvt Ltd.
A case has come to light involving serious and grave irregularities concerning a redevelopment project undertaken under the Slum Rehabilitation Authority (SRA) scheme located at Khot Dongri, Malad (East), Mumbai. These irregularities include financial fraud, misappropriation of funds, circular transactions, diversion of funds and large-scale cheating of the general public. The property in question comprises a parcel of land and its appurtenant portions, covering an area of approximately 5,600 square meters. Its CTS numbers are: 521, 521/1 to 8, 521/10 to 17, 522, 522/1 to 11, 523, 524, 524/1 to 12, 525, 525/1 to 4, 527, 527/1 to 26, 528, 528/1 to 11, 529, and 529/1 to 15. This land falls under the jurisdiction of Malad Village, Taluka Borivali, within the Mumbai Suburban Registration District. Furthermore, the property encompasses the structures erected thereon, which serve as the residences for the slum dwellers affiliated with the ‘Khot Dongri Co-operative Housing Society.’ This Society is situated at Rani Sati Marg, Malad (East), Mumbai – 400 097. The primary entities implicated in these fraudulent activities include: (1) Shah Housecon Private Limited (“SHPL”), the current developer of the said project; (2) B Right Group (a publicly listed company) (“B Right Group”); (3) Royal Realtors Landmark Private Limited (“Royal Realtors Landmark Private Limited”); along with various associated entities and suspected ‘shell companies’ operating in concert. The conduct of these entities reveals a systematic pattern of fraud, financial manipulation, and the abuse of legal and regulatory frameworks. It has been observed that, since 2019, SHPL has repeatedly executed multiple ‘Memoranda of Understanding’ (MOUs) and ‘Joint Development Agreements’ with various parties simultaneously regarding the very same project. These include the execution—and subsequent repeated cancellation—of several MOUs with the B Right Group; an agreement with Royal Realtors (dated October 30, 2020); and an MOU with Jha Buildcon and Salasar Developer (dated January 14, 2022), among others. These agreements were executed within overlapping timelines, and in doing so, no disclosure was made regarding existing legal encumbrances (whether legal, financial, or otherwise) or prior contractual obligations; this resulted in the deception of investors and stakeholders, who were kept completely in the dark throughout this entire period.
Despite being bound by existing agreements—and having simultaneously encumbered (pledged) the project’s development rights and Sale FSI (Floor Space Index)—SHPL has consistently raised funds from new investors and entities concurrently, without making any proper disclosures. It is pertinent to note that SHPL has secured substantial financial assistance—amounting to approximately Rs 104 crores—from financial institutions such as Indiabulls/ARCIL, having even pledged the ‘Sale Component’ of the said project as collateral. Despite such obstacles, SHPL proceeded to execute MOUs (memoranda of understanding) and raised additional funds.
Furthermore, the B Right Group—one of the listed companies—appears to have channeled significant funds through various related entities, including Consultshah Financial
Services Pvt Ltd, Skyline Counselling Pvt Ltd and Ayekart Fintech Pvt Ltd, wherein the management personnel are identical across all entities. The pattern of such transactions observed between 2019 and 2026 suggests a structured layering and rotation of funds—lacking any genuine commercial substance—and appears to be designed to artificially inflate valuations and present a misleading financial position. This assertion is made in light of the documentary evidence in the complainant’s possession, which provides more than sufficient justification and indications regarding the fraud being perpetrated against the innocent slum-dwellers of the Society, who have been awaiting their rehabilitation homes for many years. A distinct pattern emerges wherein funds are infused into SHPL and/or the related entities of the B Right Group, followed by an artificial inflation of the project’s valuation, a misrepresentation of financial robustness and the execution of internal transactions through related or dummy entities.
Such conduct raises serious concerns regarding market manipulation—particularly with respect to the B Right Group entities—and signals potential fraud against public investors who have
invested in the B Right Group entities. It is also pertinent to note that criminal proceedings have already been initiated against SHPL, its promoters and Sanjay Shah—one of its promoters. These proceedings target the promoters associated with the B Right Group—against whom FIRs have been registered—alleging offenses involving fraud, cheating, and criminal breach of trust in connection with the misappropriation of funds.
On behalf of the investors, it has further been submitted that criminal proceedings have already been initiated against the key entities and individuals involved in this matter: FIR No 92 was registered in February 2026 against Shah Housecon Pvt Ltd (SHPL) and its promoters. Additionally, FIR No 0861 was registered in November 2025 against Sanjay Shah, a promoter of the B Right Group. FIR No 92, dated February 2026, has been registered at the Kasturba Police Station, Borivali East, Mumbai-400 066; similarly, FIR No. 0861, dated November 2025, has been registered at the Kurar Village Police Station, Malad (East), Mumbai-400 097. The allegations set forth in the aforementioned FIRs pertain to offenses such as fraud, criminal breach of trust, and fraudulently inducing investors. Despite the registration of these FIRs, the concerned parties have continued to enter into new agreements, solicit funds from the public, and engage in transactions involving the very same encumbered project. This clearly indicates that the matter at hand is not merely an isolated dispute, but rather constitutes part of a persistent and premeditated criminal enterprise—a fact that will inevitably subject it to even more rigorous scrutiny under economic crime and anti-money laundering laws.
Copies of this complaint have been submitted to the ED, the Income Tax Department and SEBI.
Sources reveal that the B Right Group and Shah Housecon Private Limited (SHPL) has the backing of a political party; consequently, no action has been taken against them thus far—despite the fact that, in addition to the Malad case, the B Right Group and SHPL face allegations of similar fraudulent practices involving various other companies and projects.
