The FIR, lodged at Dindoshi Police Station by a businessman, states that Chaudhary had allegedly projected himself as a senior IB officer with access to government housing quotas
The suspect arrested by EOW is believed to be a close aide of the alleged mastermind, an official said. Representational Pic/File
A sensational real-estate fraud that allegedly thrived on forged Maharashtra Housing and Area Development Authority (MHADA) papers, fake government seals, and a fabricated Intelligence Bureau (IB) identity has taken a crucial turn, with the Mumbai Police's Economic Offences Wing (EOW) arresting Prabhakar Shetty from Karnataka’s Udupi district. Shetty, believed to be a close aide of the alleged mastermind, the late Rupesh Prabhakar Chaudhary, has been remanded to police custody until December 12, police said on Tuesday.
According to the investigators, Shetty allegedly handled portions of the cash and gold collected from multiple investors who were promised MHADA flats in premium South Mumbai and central suburbs. His arrest, officers said, is expected to help map the money trail in what has emerged as one of the more audacious housing scams in recent years.
The FIR, lodged at Dindoshi Police Station by businessman Mohammad Aslam Qureshi (45), states that Chaudhary had allegedly projected himself as a senior IB officer with access to government housing quotas. To reinforce this identity, he allegedly circulated forged MHADA allotment letters, fake GRAS challans, and counterfeit correspondence bearing senior officials’ names. Investors were shown these documents and allegedly assured that their flats were "in process".
Police sources said Chaudhary maintained a carefully crafted facade—travelling with armed bodyguards, using beacon-fitted vehicles, and mingling with IAS and police officers at social gatherings. One such lavish birthday celebration, attended by bureaucrats and television actors, allegedly helped him attract new investors.
Qureshi and others allegedly handed over more than Rs 17 crore between 2023 and 2025, expecting registration on 18 July 2025. Instead, they learnt that Chaudhary had died of a heart attack in Nashik earlier that day. It was during the funeral, Qureshi claimed, that he realised Chaudhary was never an IB officer. An officer said that it had already been established earlier that the documents given to the complainants by the accused were forged.
Officers said Shetty’s custodial interrogation will focus on tracing the cash flow, gold deposits, and digital communications linked to the alleged conspiracy.
"All allegations are subject to verification. The financial audit and document examination will determine individual roles," an officer said.
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