ED chargesheets 10 in ₹43.73-crore redevelopment fraud

The ED filed its prosecution complaint (chargesheet) on July 31 before a special Prevention of Money Laundering Act (PMLA) court in the city

MUMBAI: The Enforcement Directorate (ED) has submitted chargesheet against 10 people and entities over an alleged diversion of ₹43.73 crore collected from flat and shop buyers for redevelopment projects across Mumbai. The agency has alleged that promoters of the business group diverted the funds for personal benefit, leaving several projects incomplete and buyers, tenants and investors facing losses.

ED chargesheets 10 in ₹43.73-crore redevelopment fraud

The ED filed its prosecution complaint (chargesheet) on July 31 before a special Prevention of Money Laundering Act (PMLA) court in the city. It named J Tanna, D Tanna, V Tanna and seven entities belonging to the business group. The court has ordered issuance of pre-cognisance notices to the accused, ED officials said on Thursday.

J Tanna and D Tanna were promoters of the group’s entities, the agency said.

The money-laundering probe began in 2024 after the Mumbai police registered multiple FIRs against J Tanna, D Tanna and others under the Indian Penal Code and the Maharashtra Ownership of Flats Act (MOFA). Police have filed chargesheets in 14 of the 17 cases being investigated, according to ED officials.

The ED alleged that the promoters diverted money paid by flat and shop buyers for proposed redevelopment projects instead of using it for the projects. The alleged diversion led to projects not being delivered and caused losses to buyers, original tenants and investors.

The projects under investigation are located in DN Nagar, Andheri, Kandivali and Goregaon, with the alleged loss estimated at ₹43.73 crore, the agency said.

The ED had earlier attached assets worth ₹43.73 crore, treating them as alleged proceeds of crime. The properties include immovable assets in Mumbai and Ahmednagar district, as well as a property in the United Kingdom.