Mumbai Builders Scam: ED Arrests Omkar Group’s Chairman & MD in ₹22,000 Crore SRA Fraud
Mumbai Builders Scam: The Enforcement Directorate (ED) has arrested Kamal Gupta, Chairman of Omkar Realtors and Developers, and Babulal Verma, the Managing Director of the company. Both are high-ranking officials of one of Mumbai’s most well-known real estate firms.
What Is the Case About?
An FIR was filed by the Surana Group in Aurangabad, Maharashtra, alleging a fraud of ₹410 crore. Based on this FIR, the ED initiated an investigation and launched searches across various locations in Mumbai.
During the three-day operation, raids were conducted at 10 locations, including seven residential and three office premises linked to Omkar Group.
Alleged ₹22,000 Crore SRA Scam
The main allegation is that the Omkar Group misused permissions granted under Mumbai’s Slum Rehabilitation Authority (SRA) scheme. The company is suspected of using forged documents to obtain Letters of Intent (LoI) and then securing huge loans — estimated at around ₹22,000 crore — from multiple banks including Yes Bank.
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Yes Bank Link & Loan Diversion
Sources from ED also said that Omkar Group diverted ₹450 crore of loan money from Yes Bank, which is already under investigation in other high-profile financial frauds. The agency seized several documents, laptops, and hard drives during the raids.
This case is being looked at in connection with the Yes Bank scam, where co-founder Rana Kapoor was arrested. Kapoor’s bail was recently denied by the Bombay High Court.
What Was the Role of the SRA?
According to a 2019 petition in the Bombay High Court, filed by Advocate Tanveer Nizam, Omkar Group and another firm, Golden Age Group, allegedly forged documents in the names of slum dwellers. These documents were used to illegally get SRA approvals and loans without proper government permissions.
The petition also raised concerns that Omkar’s debt was over twice its paid-up capital, violating the 2:1 debt-equity ratio rule under the Companies Act. The petitioner compared the case to major financial frauds like Vijay Mallya and Nirav Modi.
What's Next?
The ED is currently investigating all financial angles, including the possibility of collusion with SRA officials and the illegal sanctioning of large loans. Kamal Gupta and Babulal Verma are now in ED custody, and more arrests or action could follow.
Conclusion
The Omkar Group case highlights the loopholes in SRA regulations and the need for tighter oversight in large-scale redevelopment projects. The ongoing ED investigation may reveal deeper financial irregularities and banking violations involving Mumbai’s top real estate players.
