ED Files Complaint Against Sai Group Promoters In ₹43.73 Crore Fraud

The Enforcement Directorate (ED) has filed a prosecution complaint against Sai Group promoters Jayesh Tanna, Deep Tanna, and Vivek Jayesh Tanna, along with seven entities linked to the group. The complaint alleges that the promoters diverted funds collected from flat and shop buyers for redevelopment projects in Mumbai for personal use, generating proceeds of crime of ₹43.73 crore.

The complaint was filed before the Special Court (PMLA) in Mumbai on July 31 under Sections 3 and 70 of the Prevention of Money Laundering Act. The court has ordered the issuance of pre-cognizance notices to all the accused.

The case stems from multiple FIRs registered by the Mumbai Police against Jayesh Tanna, his brother Deep Tanna, and others. The ED began its probe in 2024 after the police cases, in which chargesheets have since been filed in 14 of 17 cases.

The ED's investigation centers on redevelopment projects in D N Nagar, Andheri, Kandivali, and Goregaon. The agency has alleged that the promoters collected money from flat and shop buyers and investors for the proposed projects but diverted the funds for personal benefit and purposes unrelated to construction. This resulted in non-completion of the projects and caused losses to buyers, original society members, and investors amounting to ₹43.73 crore.

In March 2025, the ED searched nine premises linked to the Sai Group and its promoters, yielding documents and financial records relating to properties and transactions allegedly linked to the proceeds of crime.

The ED had earlier provisionally attached immovable properties worth ₹33.89 crore belonging to Tanna, his family members, and associated firms. The properties included agricultural land, residential flats, commercial shops, and a bungalow in Mumbai and Ahmednagar in Maharashtra.

The probe also acquired an overseas dimension, with the ED attaching a land-and-building property in the United Kingdom belonging to Tanna's family in July 2025. The property was acquired in 2017 for about £2.07 lakh (approximately ₹2.2 crore at the prevailing exchange rate), allegedly using funds diverted from the proceeds generated by cheating flat buyers and investors.

The underlying cases include allegations of buyers being left without possession despite making substantial payments. In one case before the Bombay High Court, a buyer had paid ₹3.33 crore for a flat but later discovered that the same flat had been sold to another entity. A replacement flat offered by the developer was subsequently found to have been mortgaged.

The filing of the prosecution complaint marks a significant development in the case, which has been ongoing since 2024. The ED's investigation has shed light on the alleged diversion of funds by the Sai Group promoters, causing significant losses to buyers and investors.

The case highlights the need for stricter regulations and oversight in the real estate sector to prevent such instances of fraud and protect the interests of buyers and investors. The ED's action is expected to send a strong message to developers and promoters who engage in such practices.

In conclusion, the ED's complaint against the Sai Group promoters is a significant step towards bringing those responsible for the alleged fraud to justice. The case serves as a reminder of the importance of transparency and accountability in the real estate sector and the need for buyers and investors to be vigilant when dealing with developers and promoters.

The impact of the case is likely to be felt in the wider real estate industry, with developers and promoters being held to higher standards of accountability. The ED's action is expected to boost confidence among buyers and investors, who have been affected by such instances of fraud in the past.

As the case progresses, it is likely to have significant implications for the real estate sector in Mumbai and beyond. The ED's investigation and the subsequent filing of the prosecution complaint are a testament to the agency's commitment to combating financial crimes and protecting the interests of buyers and investors.

The case is a reminder that the ED is actively working to prevent and investigate financial crimes, including those related to the real estate sector. The agency's actions are expected to have a positive impact on the industry, promoting transparency and accountability among developers and promoters.

In the end, the ED's complaint against the Sai Group promoters is a significant development in the ongoing efforts to combat financial crimes and protect the interests of buyers and investors. The case serves as a reminder of the importance of vigilance and transparency in the real estate sector and the need for developers and promoters to be held to higher standards of accountability.