The accused director is alleged to have duped the residents by collecting large sums of money under the pretext of redevelopment but failing to deliver on the promises made. The residents had entered into an agreement with the developer for the redevelopment of their buildings, with the expectation of modernized housing units. However, they claim that the redevelopment process was marred by delays, substandard construction, and financial mismanagement.

The EOW's investigation has found evidence of irregularities in financial transactions related to the project, including the misappropriation of funds collected for the redevelopment process. As per the allegations, the developer had diverted the funds intended for the construction of new flats, leading to financial losses for the residents. The total estimated amount involved in the fraud is said to be around Rs 55 crore.

The redevelopment scam has raised concerns about the regulatory oversight in Mumbai's real estate sector, where such fraudulent practices are becoming increasingly common. The EOW is currently investigating the matter further, and the developer's involvement in the fraudulent scheme is being scrutinized.

The case is seen as part of a larger effort by authorities to crack down on illegal activities in the real estate sector, especially in large metropolitan cities like Mumbai, where the demand for housing often leads to exploitation by unscrupulous developers. The residents have demanded immediate action and the return of their invested funds.