MUMBAI: On Tuesday, the Maharashtra government initiated a vigilance audit following allegations from a BJP MLA regarding a ₹2,000 crore scam in housing schemes in Mumbai.
The audit report is anticipated within 30 days, as shared by Minister of State for Urban Development, Madhuri Misal, in the legislative assembly.
Steps will be taken against Brihanmumbai Municipal Corporation (BMC) officials if it is found that they overlooked any rule violations committed by developers.
Mihir Kotecha, BJP MLA from Mulund, brought this issue to light through a calling attention motion, stating that developers have exploited provisions under Development Control Regulations (DCR) 33(11) and 33(20)(b), which are intended for in-situ Permanent Transit Camp (PTC) and Project Affected Persons (PAP) housing.
Kotecha claimed that although in-situ PTC housing was included in the approved plans, developers instead constructed and sold commercial and luxury residential units. He added that transactions exceeding ₹100 crore occurred in Mulund alone, leading to a total estimated scam of over ₹2,000 crore across Mumbai.
Minister Misal acknowledged the emergence of irregularities, noting that some developers had failed to deliver required housing stock to authorities despite having received additional Floor Space Index (FSI) benefits.
“Stop-work notices have already been issued in several cases. Strict action will follow if it’s determined that sales occurred while BMC officials ignored them,” she stated.
Misal also mentioned that the government is reviewing policies concerning the relocation of slum dwellers, particularly in situations where beneficiaries are moved beyond the designated five-kilometer radius from project sites.
A final decision on policy adjustments will be reached after further consultations.
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