Mumbai Housing Society Scam: Former Office Bearers Booked For Multi-Crore Fund Misappropriation

Mumbai: The R.A.K. Marg police have registered an FIR against former office bearers of a cooperative housing society in Wadala (West) for allegedly misappropriating funds worth crores of rupees. The accused include former secretary Nikhil Toprani and former treasurer Vallabh Shah, along with other associated individuals.

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According to the complaint filed by Dr. Bharat Kheraj Shah, 60, a resident of Sunshine Infinity on Suman Tai Mhatre Marg, the accused allegedly siphoned off society funds collected from members under the pretext of corpus and advance maintenance charges. The FIR invokes charges of criminal breach of trust, cheating, forgery, and falsification of accounts.

Dr. Shah, who purchased a flat in the building in 2023, stated that a special general body meeting held on May 2, 2023 had approved a final settlement with the developer. However, after the developer’s company allegedly entered insolvency proceedings in December 2023, the society decided in July 2024 to cancel the agreement and initiate legal action before the National Company Law Tribunal (NCLT).

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Suspicion of financial irregularities arose after the developer’s former director, Atul Bharani, sent a letter to society members in July 2024 alleging large-scale misuse of funds by the then management. Members subsequently reviewed financial documents and uncovered several discrepancies.

Investigations revealed that in March 2022, when the society allegedly had insufficient funds, Toprani and Shah transferred Rs17.27 lakh to Sumandeep University in Vadodara without approval from the general body.

Following elections in September 2024, a new managing committee was formed, which ordered a forensic audit of the society’s finances dating back to 2019. The audit, conducted by Mehta Singvi & Associates, reportedly uncovered significant irregularities during 2021–22 and 2022–23.

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The audit report highlighted the use of fake vendors, bogus billing, and fund diversion. In one instance, payments were allegedly made using fabricated invoices in the name of “Rajendra Enterprise,” whose proprietor later denied any business dealings with the society.

Further findings suggested that fake bank accounts, forged supplier records, and manipulated invoices were used to siphon off funds. Another auditor appointed by the authorities, Minanath Chavan, corroborated these findings in a report submitted in June 2025, confirming serious financial misconduct and procedural violations.

The report also cited illegal continuation in office beyond the permitted term, unauthorized adjustments in maintenance funds, and concealment of income and expenditure details in income tax filings. Additionally, fake invoices worth nearly Rs2 crore were allegedly generated without proper documentation such as GST details, PAN, or delivery receipts.

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Police suspect that further evidence of financial fraud may emerge as the investigation progresses. Meanwhile, in October 2025, the accused reportedly approached the Cooperative Court in Mumbai to challenge the continuation of forensic audits for subsequent years.

Further investigation is underway.

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