MUMBAI: Shivaji Park police on Thursday arrested a builder who has collected Rs 2.5 crore under the pretext of redeveloping a building in Dadar, but the project hasn't taken off for over a decade.

Vishnu Mahipat Jadhav (60), proprietor of Siddhivinayak Developers, was held for cheating after buyers lodged a complaint.

Jeweller Sudhir Pednekar, 65, one of the complainants, said in 2007, he learnt through Kishore Narkar, who knew both him and Jadhav, that Siddhivinayak Developers was planning to redevelop Navalkar building.

In 2008, Pednekar paid Rs 10 lakh to Jadhav as token amount and booked a 550 sq ft flat. By 2008 end, Pednekar paid Rs 21 lakh for which receipts were issued.

Jadhav, however, kept buying time to start work saying he had sent the proposal for redevelopment to various departments and was awaiting permissions.

This continued till 2017. Pednekar then learnt that around 14-15 people had similarly invested and their money was stuck as well.