How Mumbai's Prime Land is Being Sold to Vested Interests on the Cheap
The Mumbai Metropolitan Region is the country's most lucrative area of operations in the real estate business. The Maharashtra government's decision to redevelop Dharavi has raised several questions about the project's intentions.
MumbaiReal EstateAdani GroupDharavi RedevelopmentMaharashtra GovernmentReal Estate MaharashtraSep 18, 2024
Although the city's real estate market went through a slowdown from 2016 to 2022, there has been a rebound in the past two years. It recorded 11,443 property registrations in June alone, marking a 12-year record in stamp duty collection at Rs.986 crore.
Now that the party has started, powerful lobbies are eyeing the market to make a killing at the public's expense. The proposed Dharavi redevelopment project is the biggest example of this plan.
Dharavi is known for being Asia's largest slum. Located at the centre of Mumbai, it has always been in the news for redevelopment. The first concrete proposal came in 2003-04 when there was a boom in the real estate market.
Dharavi is also a hub of small-scale industries such as bakeries, garments, and leather and plastic industries. Redeveloping it has been the dream project of every State government in the past 20-plus years.
The Maharashtra government floated a tender in October 2022, which was won by Adani Properties, an Adani Group entity, with a bid of Rs.5,069 crore. However, the project has raised several questions about its intentions.
The residents' association of Dharavi claims that the proposed redevelopment of the area involves allotting houses or commercial places for the tenements, but the project's plans are in sharp contrast with the earlier proposals.
According to conditions in the new tender, there will be eligible and ineligible categories of tenements. The eligible tenements will comprise those mapped in Mashal's survey, about 81,000 of them, although DRPPL maintains that there are only about 64,000.
The classification of many tenements as ineligible means that some seven lakh people residing on mezzanine and upper floors in slum structures will now get rental houses or permanent ones outside Dharavi.
The demand for land to rehabilitate ineligible tenants is being raised by terming the proposed Dharavi redevelopment as a vital public project. However, this has raised several questions about the project's intentions.
The State government is also clearing proposals to give plots on lease to various organisations. Almost every day there are reports of preferential allotment of plots.
A 21-acre land parcel in Kurla belonging to the Maharashtra State government's Dairy Development Department is now in the eye of a storm after the department allotted it to DRPPL.
Radhakrishna Vikhe Patil, the Minister in charge who also happens to be the Revenue Minister, cleared the proposal. A highly placed government source told Frontline 'The redevelopment of this Kurla dairy land could have generated Rs.16,000 crore for the State. But the land has now been given to DRPPL.'
Another controversial land allotment happened this month in the eastern suburb of the city. The real estate in question is a parcel of 283 acres of salt-pan land.
In February, the State Cabinet cleared a proposal to allot the land to DRPPL for Dharavi's rehabilitation. This was vehemently opposed by environmental activists and members of civil society.
Later, the State government backtracked and said it would not go ahead with the plan. But the real reason behind the volte-face was that the State government does not have authority over salt-pan land; it comes under the Central government.
However, on August 7, the State government passed a resolution stating that it would seek Central government permission to use salt-pan land as well as land owned by the Mumbai Port Trust (MbPT) to rehabilitate people affected by the Dharavi project.
On September 2, the Central government approved the use of 256 acres of salt-pan land for the rehabilitation of Dharavi residents. This led to strong reactions from politicians and environmental activists.
Congress MP Varsha Gaikwad said 'We will protest this. If salt-pan land of Mumbai is used for residences, it will have a huge ecological impact. Mumbai will drown. This has to stop. We will not allow this loot by the BJP and Adani to happen.'
Vishwas Utagi said 'MbPT is the biggest land parcel of Mumbai. The builder's lobby has been eyeing it for the last three decades. The way the State government has mentioned MbPT land in the Cabinet resolution raises many questions. Under the garb of rehabilitation, the government is trying to push private builders on to port trust land.'
Yet another controversy has erupted after DRPPL sought two land parcels, totalling 64 acres, near the Mulund toll point, to rehabilitate Dharavi residents.
Residents of Mulund are against this proposal and even BJP leader and former MP Kirit Somaiyya is opposing it. The land pockets come under the Brihanmumbai Municipal Corporation, and BMC Commissioner Bhushan Gagrani cleared their handover to DRPPL citing Dharavi as a vital public project.
Sagar Deore, who is a resident of Mulund, said 'There is a plan to bring one lakh people here. This will increase the stress on Mulund. We are against it.'
Similarly, a 21-acre land parcel in Kurla belonging to the State government's Dairy Development Department is now in the eye of a storm after the department allotted it to DRPPL.
Radhakrishna Vikhe Patil, the Minister in charge who also happens to be the Revenue Minister, cleared the proposal. A highly placed government source told Frontline 'The redevelopment of this Kurla dairy land could have generated Rs.16,000 crore for the State. But the land has now been given to DRPPL.',
Frequently Asked Questions
What is the Dharavi redevelopment project?
The Dharavi redevelopment project is a proposed project to redevelop Dharavi, Asia's largest slum, located in Mumbai.
Who won the tender for the Dharavi redevelopment project?
Adani Properties, an Adani Group entity, won the tender with a bid of Rs.5,069 crore.
What is the controversy surrounding the Dharavi redevelopment project?
The project has raised several questions about its intentions, including the classification of many tenements as ineligible and the demand for land to rehabilitate ineligible tenants.
What is the impact of the Dharavi redevelopment project on the environment?
The project has raised concerns about its impact on the environment, including the use of salt-pan land for rehabilitation.
What is the role of the Maharashtra government in the Dharavi redevelopment project?
The Maharashtra government has floated the tender for the project and has cleared proposals to give plots on lease to various organisations.
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