The Maharashtra government has initiated a vigilance audit following allegations of a Rs 2,000 crore housing scam in Mumbai, raised by BJP MLA Mihir Kotecha. The probe aims to examine possible irregularities in housing schemes across the city, with officials expected to submit a report within 30 days, Minister of State for Urban Development Madhuri Misal informed the legislative assembly.
Kotecha, representing Mulund, highlighted that developers had exploited loopholes in Development Control Regulations (DCR) 33(11) and 33(20)(b), intended for in-situ Permanent Transit Camp (PTC) and Project Affected Persons (PAP) housing. “In-situ PTC housing was shown in approved plans, but developers constructed and sold commercial units and high-end residential flats instead,” he alleged, adding that transactions worth over Rs 100 crore occurred in Mulund alone, with the total scam potentially exceeding Rs 2,000 crore across Mumbai.
Minister Misal acknowledged that some irregularities had surfaced. Certain developers had failed to transfer mandatory housing stock to authorities despite availing additional Floor Space Index (FSI) benefits. “Stop-work notices have already been issued in some cases. If it is found that sales took place and BMC officials ignored them, strict action will be taken,” she said, assuring accountability.
The audit will also assess the role of Brihanmumbai Municipal Corporation (BMC) officials, with possible action against those found negligent in enforcing rules. In addition, the government is reviewing policies regarding slum relocation, especially instances where beneficiaries are moved beyond the stipulated five-kilometre radius from project sites. A final decision on potential policy amendments will be made following further consultations.
This move underscores the state’s focus on transparency in housing schemes and stricter oversight of developer practices, ensuring that benefits intended for lower-income residents are not misappropriated.
Source: ET Realty
