Mumbai builder remanded to EOW for making crores off fake construction permits
Ostwal Builders' director was arrested for defrauding buyers with fake permits for a seven-storey building, violating construction laws.
The director of Ostwal Builders Pvt. Ltd., arrested on Sunday for defrauding several people by selling them flats with fake construction permits, was remanded to police custody for two days after he was produced before a local court on Monday.
According to the Economic Offences Wing (EOW) of the Mira Bhayander Vasai Virar (MBVV) police, the accused, Umraosingh Ostwal, had received permissions to build a four floor building, Ostwal Paradise, in Nayanagar, Mira Road. Instead, he constructed a seven-storey tower, and the police suspect that the Mira Bhayandar Municipal Corporation (MBMC) too may have had a role to play in the case.
ALSO READ | EOW announces schedule for DSK depositors to submit documents
Initially, in 2005 and 2006, Ostwal Builders got two separate construction permissions from the MBMC. Based on these, the builder constructed five buildings and a shopping centre. The sixth building, constructed in 2007, was built seven-storey tall, despite having the permissions only for four. One of the defrauded complainants, Ranjit Jha, the secretary of Ostwal Paradise, said, “During the construction, many maps were manipulated and flats were sold with the help of fake documents.”
Residents of Ostwal Paradise grew suspicious when years after getting their flats, they were still not being given the conveyance deed to their apartments. Jha said that once residents obtained the construction permits and other building documents through an RTI, they realised that the documents used for the buildings’ approval and construction were fake.
{{/usCountry}}Residents of Ostwal Paradise grew suspicious when years after getting their flats, they were still not being given the conveyance deed to their apartments. Jha said that once residents obtained the construction permits and other building documents through an RTI, they realised that the documents used for the buildings’ approval and construction were fake.
{{/usCountry}}To appease residents, the builder signed a Memorandum of Understanding (MoU) with them in 2019, claiming that he would legalise all the irregular constructions in two years. As per the MoU, he promised the residents that he would soon provide them with the conveyance deed to their flats, and would iron out the issues with the Floor Space Index (FSI).
{{/usCountry}}To appease residents, the builder signed a Memorandum of Understanding (MoU) with them in 2019, claiming that he would legalise all the irregular constructions in two years. As per the MoU, he promised the residents that he would soon provide them with the conveyance deed to their flats, and would iron out the issues with the Floor Space Index (FSI).
{{/usCountry}}“But this agreement proved to be just a sham. Neither of the promises were fulfilled, rather, without the approval of the old flat owners, the construction of the new multi-storey building Ostwal Building No.9 has also started.” According to Jha, without giving proper amenities to the residents of building No.6, Ostwal began constructing building No.9 which ate into space which should have been used for the flats of building No.6. “This has been done without our approval, and the builder has profited in crores,” Jha said.
{{/usCountry}}“But this agreement proved to be just a sham. Neither of the promises were fulfilled, rather, without the approval of the old flat owners, the construction of the new multi-storey building Ostwal Building No.9 has also started.” According to Jha, without giving proper amenities to the residents of building No.6, Ostwal began constructing building No.9 which ate into space which should have been used for the flats of building No.6. “This has been done without our approval, and the builder has profited in crores,” Jha said.
{{/usCountry}}ALSO READ | BEST credit society fraud probe: EOW begins inquiry into ₹12.41-crore Lonavala property deal
Jha had approached the police in May 2025, and following his complaint an FIR was registered against Ostwal. “The MBMC has violated our fundamental rights and extended undue benefits to Ostwal Developer,” Jha said.
EOW officers have estimated that the fraud may amount to crores, but are yet to release any official numbers. Investigating officer Nitin Chaudhari said, “We have sent a notice to the MBMC to recover the permissions given to the accused.” He added that the EOW will then verify whether the documents are real or fake.
“Town planning and MBMC officials bear significant responsibility for failing to take timely action and attempting to shield the developer,” Jha said. He added that many of the officials who may have aided the fraud to continue unchecked have since retired and are living a peaceful life while flat owners continue to struggle. “To ensure true justice, these officials must be investigated thoroughly,” added Jha.
Stay updated with all the Breaking News and Latest News from Mumbai. Click here for comprehensive coverage of top Cities including Bengaluru, Delhi, Hyderabad, and more across India along with Stay informed on the latest happenings in World News.
Stay updated with all the Breaking News and Latest News from Mumbai. Click here for comprehensive coverage of top Cities including Bengaluru, Delhi, Hyderabad, and more across India along with Stay informed on the latest happenings in World News.