MUMBAI: Junior Urban Development Minister Madhuri Misal acknowledged in the assembly that there were irregularities in the BMC’s agreement for a housing project in Malad (E) designated for project-affected persons (PAPs). She noted that while all funds were transferred to the developer, no start date for the project was specified. Misal mentioned that she requested a report on all issued credit notes.
Congress MLA Aslam Shaikh, who raised the concern, claimed that land classification was altered unlawfully, resulting in increased ready reckoner rates and elevating the project cost by Rs 618 crore. He expressed that the project might not be completed for 10-20 years and called for an inquiry to be led by a retired High Court judge rather than an official of ACS rank.
Shaikh stated, “The land was initially designated for police housing but was converted for PAP units, with the acceptance letter amended post-April 2025. Ready reckoner rates surged from Rs 84,460/m² to Rs 1,33,670/m² through illegal reclassification. This adjustment was made without any fresh inspection, raising concerns of collusion, leading to an increase in cost per PAP unit from Rs 32.2 lakh to Rs 50.9 lakh. Other PAP units from SRA are available for only Rs 15 lakh, contributing to an overall increase of Rs 618 crore.” He also alleged that the contract was awarded to an individual linked to the 2G scam.
Misal stated that the developer is tasked with constructing 13,347 flats for PAPs, with 40% of the area earmarked for police housing and 60% for PAP flats. “The developer has been awarded a credit note of Rs 470 crore for the first phase. A conveyance deed for land transfer to BMC was signed on 27/06/2025. Following the inclusion of BMC’s name on the property card, an additional credit note of Rs 470 crore was issued for the second phase, alongside 100% TDR (97,102 sq m),” she explained in a formal reply.
Shaikh noted that the private plot is situated in a no-development zone. Initially, it was reclassified for police housing before being switched for PAP housing favoring a builder. He asserted that BMC made payments to the developer without secure environmental clearance, and claimed, “BMC incurred Rs 200 crore constructing access roads, which should have been the builder’s responsibility under the PAP scheme.”
