MUMBAI: The Maharashtra Housing and Area Development Authority (MHADA) has reportedly been defrauded of over Rs 121 crore in a scheme spanning 25 years. The Kherwadi police have initiated a case against ten developers and firms for neglecting to pay rent for transit tenements designated for redevelopment projects.
Given the considerable financial implications and the extended duration of the fraud, the case has now been forwarded to the Economic Offences Wing (EOW) for further investigation.
The complaint was lodged by Mohan Raosaheb Bobade, a MHADA officer, following an internal audit of rental payments associated with the transit tenements leased to developers for redevelopment initiatives. The audit uncovered that multiple developers had allegedly failed to address rent obligations despite occupying these properties for an extended period. The FIR was filed at the Kherwadi police station, which oversees the Kalanagar area where MHADA’s office is situated.
Police reported that MHADA had leased around 400 transit tenements across various locations in Mumbai to several developers through lease agreements, No Objection Certificates (NOCs), and allotment letters from January 1, 1996, to December 31, 2021.
These transit units are typically offered to developers for temporary lodging of tenants displaced during redevelopment work.
Investigators noted that upon their acquisition of the tenements, developers initially paid part of the rent, establishing trust with MHADA, and entered into formal agreements. However, after gaining access to the transit properties, they reportedly ceased rent payments and breached the contract terms.
As a result, MHADA has incurred a financial loss amounting to Rs 121,00,53,105. Authorities suspect that additional developers might also have defaulted on rent for similar tenements, which will be reviewed during the ongoing investigation.
Police have filed charges against the implicated developers under Section 420 (cheating) of the Indian Penal Code based on the allegations.
Since the alleged fraud covers over two decades and involves significant monetary loss, the case has been transferred to the Economic Offences Wing for thorough financial examination and verification of documents related to the allocations and rent payments. The FIR was registered on March 10, and investigations are in progress.
