MUMBAI: The Economic Offences Wing (EOW) of the Mumbai Police has uncovered an alleged housing scam involving Rs 150 crore. Home possession documents intended for approximately 1,000 residents of slum rehabilitation were reportedly sold to third-party buyers.
The company at the heart of this alleged scheme is Housing Development and Infrastructure Ltd (HDIL) Group. The EOW investigation suggests that top executives of HDIL might be involved, although the firm’s lawyers have refuted this claim to Mirror.
The EOW filed its chargesheet on Thursday, naming HDIL promoters the Wadhwans and their associates while also awaiting the Slum Rehabilitation Authority’s (SRA) feedback to further pursue investigation leads.
A significant statement was provided by Chandrashekhar Dinappa Gowda (46), a former staff member of HDIL who served as an Officer on Special Duty at the company’s Bandra office. His testimony indicated that HDIL was responsible for the redevelopment of around 3,000 slum structures across nine societies in Bharat Nagar. Almost 2,000 huts were vacated during this process, and the company allegedly acquired document files from around 1,500 occupants, including both eligible and ineligible individuals, and those whose names were absent from official records.
According to Gowda, these files were stored in the company’s accounts department. From around 2011, they began to be sold for Rs 15-16 lakh each, with the earnings handed over to HDIL chairman Rakesh Wadhawan. Some buyers even allegedly presented blank cheques with only the amount filled out, which were then forwarded to senior officials.
The buyers received possession letters allowing them to occupy transit accommodations designated for the original residents, although these letters indicated that permanent rehabilitation would only occur following eligibility verification.
Individuals purchasing the files approached Gowda with the documents, who then verified the transactions with the accounts department before issuing HDIL possession letters for rooms in Kurla Premier transit camp – a prime real estate location in Mumbai. In 2009, HDIL built 30 buildings at Kurla Premier to rehabilitate slum residents displaced by airport construction. They had leased 1,336 transit flats from the SRA to accommodate project-affected residents from Bharat Nagar, with about 1,200 residents relocated to the transit camp.
However, investigations revealed that many original beneficiaries were untraceable, and numerous units were allegedly occupied by unauthorized individuals who had bought hutment document files from the Wadhwans. An EOW officer, speaking anonymously, stated, “We are looking into whether the Wadhwans compensated the original slum dwellers whose papers were sold.”
Moreover, it was discovered that HDIL allegedly defaulted on rental payments between August 2014 and March 2016, leading to a debt of nearly ₹44 crore.
A case was registered on March 4, 2025, at Vinoba Bhave Nagar police station, under sections related to cheating, criminal breach of trust, forgery, and criminal conspiracy. The investigation was later handed over to the Mumbai EOW, which reviewed project documents, financial records, and statements from more than 60 witnesses prior to filing the chargesheet.
Meanwhile, former HDIL managing director Sarang Wadhawan and former chairman Rakesh Wadhawan have denied the allegations in their statements to investigators. They claimed that while the company purchased files of huts for redevelopment, they were not directly involved in selling those files to third parties, attributing day-to-day transactions to designated officials.
Investigators are also analyzing financial records and company transactions, noting that HDIL later faced financial struggles, leading to insolvency proceedings before the National Company Law Tribunal (NCLT). Additionally, the Enforcement Directorate (ED) is conducting a separate examination of the company’s financial activities.
Harshad Nimbalkar, the lawyer for Rakesh and Sarang Wadhawan, denied all accusations, stating, “Allegations regarding the sale of 1,000 shanties have been made. Let the police provide evidence in court; we will present our defense there as well.”
