The Maharashtra Housing and Area Development Authority (MHADA) has approved an allocation of Rs 200 crore to reclaim three of the four vacant plots linked to the contentious Patra Chawl redevelopment in Goregaon, a dispute valued at Rs 1,039 crore. The decision received clearance from the state cabinet and was formalised through a government resolution issued last week.
The payment forms part of consent terms submitted by MHADA before the Bombay High Court in response to a contempt petition filed by Guruashish Constructions, the developer originally appointed for the project in 2008. The Patra Chawl redevelopment was conceived through a tripartite agreement between MHADA, residents, and the builder, with plans to construct nearly 3,000 homes for 672 tenant families. However, work stalled by 2011, after which the developer allegedly sold nine plots without authorisation.
According to the Enforcement Directorate, these sales generated Rs 1,048 crore, a substantial portion of which was allegedly diverted away from the project. Following prolonged delays, MHADA took over the redevelopment in 2018 and completed construction by 2024. While three plots were developed into private housing societies and one was reserved for rehabilitation, ownership disputes over four vacant plots persisted.
During court proceedings, Guruashish Constructions sought compensation along with 9% simple interest from 2011. MHADA agreed to pay interest from 2018, when it formally assumed control of the project. Three developers accepted the revised terms, while the fourth initially declined. Officials confirmed that after cabinet approval, the remaining developer has now also consented to the settlement, paving the way for MHADA to regain possession of the land.
The authority plans to recover the ₹200 crore outlay by selling new flats constructed on the reclaimed plots at prevailing market rates. This strategy follows recommendations of a government-appointed committee led by former chief secretary Johny Joseph, ensuring financial recovery alongside fulfillment of housing commitments.
The decision marks a critical step toward resolving one of Mumbai’s most high-profile redevelopment controversies, restoring MHADA’s control over strategic land parcels and bringing closure to years of legal, financial, and administrative uncertainty.
