MUMBAI: Mhada will invest ₹200 crore to re-acquire three plots related to the ₹1,039-crore Patra Chawl redevelopment scandal. This payment was approved by the state cabinet last week, with an official resolution issued on Thursday.
This payment is part of Mhada’s consent terms submitted to the High Court, which is currently addressing a contempt petition from builder Guruashish Constructions, a subsidiary of HDIL.
Mhada appointed Guruashish Constructions for the project in 2008, and a tripartite agreement was established between residents of the Goregaon area, the planning authority, and the builder to facilitate redevelopment. However, work was halted by 2011. Mhada took over in 2018 and is set to complete it by 2024.
During the stalled redevelopment, the builder sold nine plots from the Patra Chawl layout to other developers. The Enforcement Directorate claims these sales raised ₹1,048 crore, with a significant portion of the funds intended for the 3,000-flat project meant for 672 tenants being misappropriated.
Private societies were developed on three of the plots, which the court allocated to these societies. A fourth plot was earmarked for rehabilitation, and since a plinth had been constructed on the fifth, the court permitted further development. The remaining four plots are vacant.
In the contempt petition, Guruashish Constructions is seeking compensation, along with 9% simple interest since 2011. If compensation is granted, the full rights will then revert to Mhada. Mhada has agreed to pay interest only from 2018 when it took over the project. While three builders reached an agreement, the fourth initially refused but has now consented following cabinet approval for payments to the other builders.
The funds will be recuperated from the sale of flats to be constructed on these plots at market prices, a recommendation made by a government committee chaired by former chief secretary Johny Joseph.
