The Chembur police have booked a city-based builder for allegedly duping a private sector bank of Rs 16.49 crore by selling off mortgaged flats behind the lender’s back. Police said that an FIR was registered on Monday night against one Paras Sundarji Dedhiya, proprietor of Yash Builders, based on a complaint filed by the assistant vice-president of the bank’s Nariman Point branch.
According to the police, Dedhiya allegedly obtained a Rs 20 crore loan in January 2016 from the bank’s Chembur branch for his flagship projects — Yash Signature at Deonar and Yash Heights at Govandi. As security, Dedhiya mortgaged 18 flats and one office unit from Yash Signature, the entire Yash Heights project, and two commercial offices at Masjid Bunder.
While the bank disbursed Rs 16.49 crore, much of it went to settle Dedhiya’s earlier R15 crore borrowing. According to the FIR, Dedhiya repaid instalments only till October 2017, before defaulting and turning the account into a non-performing asset (NPA) by mid-2018.
What shocked the bank later was the discovery that Dedhiya had secretly sold off the very flats he had pledged as collateral, without obtaining mandatory no-objection certificates from the bank, stated the FIR. A title search in 2024 confirmed that buyers had already been given possession of the mortgaged homes, leaving the lender high and dry.
“The accused, despite full knowledge that the properties were under mortgage, diverted them for his own gain and committed breach of trust,” the FIR further stated, adding that Dedhiya not only cheated the bank but also concealed facts from unsuspecting flat buyers. In 2018, the bank had dragged Dedhiya and his wife to the Debt Recovery Tribunal and even invoked the SARFAESI Act, but the legal battle exposed how lenders are left chasing builders who brazenly disregard loan covenants.
The police have now taken cognisance of the matter, with the Economic Offences Wing (EOW) taking over the case for an extensive investigation. “We will be summoning the accused and involved shareholders for questioning and recording their statements,” an official confirmed. In April 2024, the Bombay High Court had sentenced Dedhia to three months of civil imprisonment for contumacious conduct (wilful disobedience) of court orders. He reportedly breached undertakings given to the court in Chembur-Govandi redevelopment cases.
Previously, Chembur police and Govandi police had booked Dedhia for being accused of defaulting on redevelopment obligations, including not handing over possession of flats, not paying transit rent, and not fulfilling the terms promised to original owners.
