Member of Green Garden Apartments CHS exposes alleged fraud and misuse of society funds under the guise of consultancy payments | Representational image
Mumbai: One of the members of the Green Garden Apartments CHS Ltd in Deonar, Gaurav Chopra, who is a chartered accountant, has alleged that the Managing Committee (MC) members have committed a fraud and siphoned off crores of rupees, under the garb of paying consultants.
Chopra, a resident of the society since December 2022, has filed an affidavit before the Bombay High Court, claiming that the MC executed fraudulent transactions and is now attempting to scapegoat him for exposing the financial irregularities.
His affidavit comes in response to a suit filed by the society against him, its former chairman and multiple real estate developers, challenging the validity of TDR sale agreements allegedly executed without general body approval. The society has also sought a refund of Rs16.51 crore allegedly paid unlawfully to two consultancy firms.
The controversy dates back to August 2023, when the Brihanmumbai Municipal Corporation (BMC) awarded TDR to the society. The MC subsequently sold the TDR to developers, executing agreements between August and September 2023. However, Chopra claims that while the MC was fully aware of these transactions, it has now conveniently chosen to challenge them in 2025 to deflect from financial irregularities.
According to Chopra’s affidavit, the society’s financial records for 2023-24 revealed consultancy expenses amounting to Rs20.38 crore. Upon inquiry, he discovered that Rs 6.50 crore was paid to consultancy firm JP Nestor LLP (Defendant 3) for assisting in obtaining TDR, while Rs13.80 crore was transferred to another consultancy firm NV Consultants (Defendant 4), whose role in the TDR process remains unclear. Additionally, Rs 3.42 crore was recorded as outstanding payments to NV Consultants.
Despite the society receiving Rs 46 crore from the TDR sale, its financial statements showed only Rs 25.17 crore in the society’s balance and fixed deposits, indicating a significant shortfall, the affidavit claimed.
Chopra has further alleged that his signature was forged on a July 2023 mortgage deed executed between the society and JP Nestor LLP. He is in the process of taking legal action regarding the alleged forgery.
In December 2024, Chopra lodged a complaint with the Deputy Registrar of Cooperative Societies, prompting an inspection of the society’s records. A subsequent audit flagged several financial discrepancies, including payments made to NV Consultants.
The registrar issued a show-cause notice to the MC for failing to conduct an Annual General Meeting (AGM) for 2024-25. In response, the MC attempted to hold an AGM on January 5, 2025. However, society members refused to adopt the financial statements, further raising suspicions.
Advocate Prerak Chaudhary, representing Chopra, said that the CA has also filed a criminal complaint with the Govandi Police Station, accusing the MC of cheating and criminal breach of trust. His affidavit alleges that MC members misused society funds to pay legal fees for their personal defense, violating the Maharashtra Cooperative Societies Act.
The society’s suit, filed on February 17, 2025, alleges that certain MC members executed fraudulent TDR sale agreements. However, Chopra claims this legal action was initiated only after he exposed financial irregularities and filed complaints with the authorities.
Crucially, he points out that while the suit challenges the TDR transactions, it does not seek relief against the society’s Secretary and Treasurer, who were responsible for approving all financial transactions. This, he argues, indicates that the lawsuit is a ploy to shift blame away from key decision-makers. The suit is likely to come up for hearing next week.
According to the Society’s suit, the Brihanmumbai Municipal Corporation (BMC) acquired 7,284.10 sq. meters of the society’s land in 1986 for road construction. As compensation, the society became entitled to TDR, which was formally granted in August 2023 through a Development Rights Certificate (DRC).
