Shobhit Rajan Faces Fresh ₹600 Crore Fraud Allegations Amid History of Business Controversies

Mumbai, July 2025: Mumbai-based developer Shobhit J. Rajan is once again at the centre of controversy, with his flagship firm Ecstasy Realty Private Limited accused of fraudulently diverting nearly INR 600 crore raised from investors for its high-profile ‘Parthenon’ residential project in Andheri.

Investigations by the Economic Offences Wing (EOW) reveal that Ecstasy Realty allegedly raised funds through secured Non-Convertible Debentures (NCDs) intended for construction but instead routed the money through a web of layered transactions, benefiting promoters and related entities. Authorities claim forged documents were submitted to justify the fund's use, concealing the diversion from lenders and investors.

The alleged fraud has resulted in substantial losses to debenture holders and significant project delays. Officials state that the diverted funds involved related companies, including Prabal Infra Agro Farms Pvt. Ltd. and Maharashtra Eco Green Pvt. Ltd.

An FIR has been filed at Juhu Police Station against Ecstasy Realty and its directors under various IPC sections, including cheating, criminal breach of trust, forgery, and criminal conspiracy. Recently, the sessions court in Mumbai denied anticipatory bail pleas of Rajan and other directors, underscoring the seriousness of the charges. There are unconfirmed reports suggesting that Rajan may not currently be in India, though this could not be independently verified.

This is not the first time Shobhit Rajan has faced serious legal and business controversies.

Previously, Canadian businessman Alnoor Jamal accused Rajan of oppression and mismanagement in their joint venture to develop Raiaskaran Tech Park (Logitech Park) on Mumbai’s former Parke Davis land. Jamal alleged his stake was diluted from 50% to 28.33% and he was removed from the board in 2004. The Bombay High Court in 2015 upheld an order for Rajan to compensate Jamal, and the matter later reached the Supreme Court.

In another case, Rajan’s group entity Nadal Infra Agro Pvt. Ltd. faced a land grab allegation in Lonavala, where developer Aneel Vadgama accused him of forcibly taking possession of a 25-acre plot valued at around INR 50 crore in 2016. Vadgama alleged that over 100 men linked to Rajan stormed the land, fired a gun, and assaulted his staff. Rajan denied the claims, asserting his purchase was legal and accused Vadgama of fabricating documents.

In 2013, former IPS officer Y.P. Singh alleged that Ecstasy Realty violated green norms by constructing on land earmarked as a tree plantation buffer zone. Ecstasy Realty denied any illegality.

The latest INR 600 crore fraud allegations add to the string of legal challenges surrounding Shobhit Rajan and his business ventures.