RNA Corp booked for duping 36 flat owners

The case dates back to 2003, when the developer had approached residents of building numbers 21 and 22 in Sneh Sadan Co-operative Housing Society, in Subhash Nagar, Chembur, to hand over the 48-year-old buildings for redevelopment

Mumbai: The Economic Offences Wing (EOW) of the Mumbai police has registered a case against RNA Corporation’s chairman Anil Aggarwal (who is now no more); Sarang Aggarwal; GA Builders Private Limited, a subsidiary of RNA Corporation; Anubhav Aggarwal and Gokul Aggarwal, for allegedly taking over an old building in Chembur to redevelop 20 years ago and allegedly defrauding 36 flat owners by not giving them their new homes. The plot of land where their building once stood is now a public garden.

Mumbai, India - Aug 08, 2024: Photo of the garden where the complainant's building once stood. The Economic Offenses Wing (EOW) has registered a case against RNA Crop's subsidiary G A Builders for allegedly cheating 36 flat owners. The builder allegedly took the building for redevelopment, gave the land to MHADA to develop a garden, and taking other land and sell flats to new buyers in Mumbai, India.08, 2024. (Photo by Raju Shinde/ Hindustan Times) (Hindustan Times)

The case dates back to 2003, when the developer had approached residents of building numbers 21 and 22 in Sneh Sadan Co-operative Housing Society, in Subhash Nagar, Chembur, to hand over the 48-year-old buildings for redevelopment. The housing society was built by MHADA in 1960 for people from the lower income group. There are 57 buildings in the housing society.

This was the builder’s deal with residents of the twin buildings: he told them that instead of two buildings, he would construct a single tower on the land of building number 22, where residents of both buildings would get flats. Approximately 72 owners were promised flats measuring 320-sq-feet plus an additional 65-sq-ft with state-of-the-art amenities. The builder also promised them rent of ₹8000 per month till the building was constructed.

After the deal was struck, the vacant plot of building 21 was handed over to MHADA for a garden; in lieu of this plot he was allocated replacement land where he built 208 flats in a 15-storey highrise called RNA Continental and sold it in the market.

After the two buildings were razed, construction started in 2008.

However, since 2018, residents stopped getting transit rents and the builder halted construction when the Covid-19 pandemic hit in March 2020. After the pandemic was over, residents of building number 22 rallied together and moved the Bombay high court against the builder and with a demand to engage a new builder for the project. The court ruled in their favour following which a new builder was brought in to complete the project.

This left residents of building 21 in the lurch. Their patch of land is a garden and as there is nowhere they could be rehabilitated, they approached the EOW post-pandemic and registered a case against the builder. “The builder has cheated the 36 flat owners from the old building number 21 and committed a fraud to the tune of ₹30 crore,” said the EOW officer.

The EOW has registered the case under sections 409 (criminal breach of trust by banker or agent, merchant), 420 (cheating), 120-B (criminal conspiracy) and 34 (common intention) of the Indian Penal Code.