Malad Businessman Duped Of Rs 26 Lakh In Fake MHADA Flat Scam, One Arrested

The Dindoshi police have arrested a man for allegedly defrauding a Malad-based businessman of Rs 26 lakh in a fake MHADA flat allotment scam. The suspect, Sujit Dattaram Chavan, allegedly teamed up with an accomplice to lure the victim, Manish Agarwal, with the promise of discounted flats in Mira Road by posing as housing authority officials.

The dream of owning a discounted MHADA flat turned into a Rs 26 lakh nightmare for the 51-year-old businessman. The suspects allegedly impersonated housing authority officials, forged official documents, and made false promises of insider access to convince the victim before disappearing with his money.

The fraudulent scheme began in July 2023 when Agarwal first came into contact with one of the suspects, Afzal Payak, who joined his company. According to the police, Payak won Agarwal’s confidence by claiming he had close links with MHADA and could arrange flats.

Payak then introduced Agarwal to Chavan, presenting him as a serving MHADA officer. Chavan told Agarwal that he could allot flats in the New Sky Line MHADA project in Mira Road East for Rs 55 lakh each, which they claimed were worth around Rs 80 lakh each.

Believing the suspects' claims of insider access, Agarwal agreed to purchase two of the flats. He ended up losing Rs 26 lakh to the fraudsters, who used forged documents to secure the money before vanishing.

Nearly three years after the fraud initiated, the Dindoshi police arrested Chavan, who is a resident of Borivli West. The arrest was reported around July 20, 2026. The police are continuing their efforts to trace Payak, who remains at large.

The Dindoshi police are currently investigating the case. The financial loss suffered by the victim stands at Rs 26 lakh, and officers are actively searching for the second suspect involved in the impersonation and forgery scam.