NAGPUR: On Wednesday, the state government initiated an inquiry into tenders that were allegedly quoted “below estimated price” for the rehabilitation of aging and crumbling buildings in Mumbai, following claims of irregularities raised in the assembly.
During a discussion regarding nearly 16,000 cessed buildings in south Mumbai, Congress MLA Amin Patel urged the government for immediate action to accelerate their redevelopment. He pointed out that tenders issued by Mhada received bids that were 100-140% lower than the estimated costs. “Under the guise of repairing these dilapidated buildings, contractors are illegally adding extra floors and profiting from the sale of these new flats. For example, if a building has seven stories, they might construct two additional floors,” he stated.
Minister Shambhuraj Desai acknowledged that officials had alerted him about these practices in south Mumbai. “Additional Chief Secretary Aseem Gupta will lead the inquiry into this matter, and all such contracts will be terminated promptly,” he added.
Patel also called for the government to advocate for lifting the Bombay High Court’s stay on the amendment to Section 79A of the Mhada Act, which permits planning authorities to acquire cessed buildings deemed unsafe. “If these buildings are not acquired, many risk collapse during the upcoming monsoon,” he noted. Desai mentioned that Mhada approached the Supreme Court in August, and the next hearing is scheduled for January 15. “We have asked Solicitor General Tushar Mehta to represent the state government. We aim to inform the Supreme Court about the urgency to implement Section 79A to protect lives,” he stated.
Cessed buildings are residential or commercial buildings constructed before 1969 that pay a cess to Mhada for their maintenance and repairs.
