Chhota Rajan's name used to threaten Mumbai developer, 5 arrested for extortion

A redevelopment dispute over a Bandra property turns into an alleged extortion plot involving threats, gang links and a Rs 11 crore settlement, as police widen their probe.

In Short

• Mumbai developer faces an alleged Rs 32 crore extortion demand over redevelopment
• Five accused are arrested after police lay a trap with Rs 25 lakh fake notes
• Police probe alleged links to the Chhota Rajan gang and earlier extortion cases

A redevelopment project in Mumbai's western suburbs became the centre of an alleged extortion plot after a developer was threatened with murder and other consequences and asked to pay Rs 32 crore, with the demand later settled at Rs 11 crore. Five people have been arrested, while the Mumbai Crime Branch has launched a manhunt for two other accused, including an NGO owner allegedly linked to the case.

The Anti-Extortion Cell of the Mumbai Crime Branch is probing the alleged extortion bid, in which the accused allegedly threatened the developer's officials with dire consequences, obstruction through complaints to government agencies and civic authorities, and even death if work on the property continued.

The FIR names eight accused and others. Among those named are Rajvinder Singh of Ms Rajlaxmi, who is allegedly associated with the Chhota Rajan gang, NGO owner Clementinus Faro and another accused identified as Tony. Faro and Tony are currently wanted.

The case relates to a property in Bandra West that belonged to the Archdiocese of Bombay and had existed for around 50 years.

PROPERTY THAT LED TO THE EXTORTION BID

The Archdiocese of Bombay had initiated a tendering process for redevelopment of the property on Pereira Road in Bandra West. Diljay Properties emerged as the highest bidder.

The Archdiocese administration subsequently handed over the property to Diljay Properties for redevelopment after obtaining the necessary No-Objection Certificate and permissions from the office of the Charity Commissioner.

The property, which was around 50 years old and in a dilapidated condition, was declared a C-1 category dangerous building by the Brihanmumbai Municipal Corporation in 2024. The civic body subsequently disconnected electricity and water supplies to the entire property to facilitate its safe demolition.

Ethel Steven, Daniel Steven and some of their family members were allegedly living illegally on the property.

By June 2026, the building had reached a highly dangerous condition. An official inspection, or panchnama, was carried out in the presence of senior BMC officials and police personnel. The belongings of caretaker Ethel Steven, Daniel Steven and Tony's family were subsequently removed, and the hazardous structure was demolished following the prescribed procedures.

THREATS AFTER DEMOLITION

After the demolition, members of Ethel and Daniel's families allegedly began visiting the site periodically with people described as having criminal backgrounds.

According to the complaint, gang members from areas such as Chembur and Kurla, allegedly linked to the Chhota Rajan gang, accompanied them and assaulted and threatened security personnel and other staff working for the developer.

Complaints over these incidents were filed at Bandra Police Station. Two cases were registered under FIR No 1393 dated July 11, 2026, and FIR No 1564 dated July 29, 2026.

The alleged threats continued while the developer was carrying out security barricading work at the plot. Ethel and Daniel allegedly arrived at the site with accomplices and threatened that they would not allow any work to continue.

RS 32 CRORE DEMAND

The accused allegedly told the developer that they had links with Rajvinder Singh, who was allegedly associated with the Chhota Rajan gang in Chembur, Abdulla Khan from Kurla, and Remi and Nazir from Bandra.

They allegedly threatened to join forces with some or all of them to kill the developer's representatives.

"If you want to carry out the work and save your life, pay us 32 crore," they allegedly told the developer before leaving the site.

As the accused allegedly continued visiting the property and issuing threats, another complaint was filed at Bandra Police Station.

On August 24, 2026, the accused allegedly visited the company's Bandra office and met Diljay Properties director Gagan Sharma. They allegedly called it a final warning and pressured the company to settle the matter through negotiations.

A settlement was subsequently allegedly reached at Rs 11 crore. The accused allegedly demanded Rs 25 lakh as the first instalment on September 1, with the remaining amount to be paid within the next four weeks.

DEVELOPER APPROACHES CRIME BRANCH

The developer then approached the Mumbai Police Crime Branch, fearing that the matter could escalate and pose a threat to life.

Officials carrying recordings, photographs and copies of the earlier FIRs met Anil Kumbhare, Joint Commissioner of Police, Crime Branch, Mumbai Police, and lodged a formal complaint.

After examining the evidence, the police treated the matter as sensitive and handed the investigation to the Anti-Extortion Cell.

FIVE ARRESTED IN POLICE TRAP

On September 1, when Ethel, Daniel and their accomplices allegedly arrived at the developer's Bandra office to collect the first instalment of Rs 25 lakh, the Anti-Extortion Cell laid a trap and arrested them while they were accepting the money.

The trap money consisted largely of children's play currency worth Rs 24.95 lakh, placed beneath an upper layer of genuine Rs 500 notes worth Rs 5,000.

The police subsequently arrested Ethel Steven, Daniel Steven, Naseer Sheikh, Abdulla Khan and Remy Fernandes. Three accused were initially caught during the trap, while the other two were arrested later in connection with the operation.

The five accused, including a woman, were arrested in the case and have since been sent to judicial custody.

MANHUNT FOR NGO OWNER, ANOTHER ACCUSED

The Crime Branch is now conducting a manhunt for Clementinus Faro, who runs an NGO and has been named as accused number eight in the FIR, and Tony.

Faro allegedly demanded Rs 1 crore as extortion money for his NGO, threatening to create obstructions in the development project.

The FIR also names Rajvinder Singh of Ms Rajlaxmi as allegedly associated with the Chhota Rajan gang.

POLICE PROBE WIDER GANG LINKS

The police are now examining the alleged connections of the accused with other people and gangs. Investigators are also looking into how many people the accused may have previously threatened with death and whether they have allegedly extorted money from others.

During the preliminary inquiry, several names have emerged. Remi has allegedly emerged as a key figure and had previously been arrested by the Anti-Extortion Cell.

Police are also investigating the alleged involvement of Abdul Khan from Kurla, Rajvinder Singh from Ulhasnagar and certain family members of Ethel and Daniel Steven in similar alleged blackmail and extortion incidents.

The investigation is continuing, with the Crime Branch probing the alleged gang links, previous complaints and the wider network behind the extortion attempt.

- Ends