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Maharashtra Government Orders Vigilance Audit in ₹2000 Crore Housing Scam Allegation

Published: March 18, 2026 | Category: Real Estate Maharashtra
Maharashtra Government Orders Vigilance Audit in ₹2000 Crore Housing Scam Allegation

The Maharashtra government has ordered a vigilance audit into a ₹2000 crore scam in housing schemes in Mumbai, following allegations raised by a BJP MLA. The audit is expected to be completed within 30 days, Minister of State for Urban Development Madhuri Misal announced in the legislative assembly.

Mihir Kotecha, BJP MLA from Mulund, raised the issue through a calling attention motion. He alleged that developers have misused provisions under Development Control Regulations (DCR) 33(11) and 33(20)(b), which are meant for in-situ Permanent Transit Camp (PTC) and Project Affected Persons (PAP) housing. Instead of constructing the required housing, developers have built and sold commercial units and high-end residential flats.

Kotecha claimed that transactions worth over ₹100 crore have taken place in Mulund alone, and the total scale of the scam across Mumbai exceeds ₹2000 crore. The misuse of these regulations has led to significant financial losses and a failure to provide essential housing for affected populations.

Minister Misal acknowledged that certain irregularities have come to light, and some developers have failed to hand over mandatory housing stock to the authorities despite availing additional Floor Space Index (FSI) benefits. 'Stop-work notices have already been issued in some cases. If it is found that sales took place and BMC officials ignored them, strict action will be taken,' she stated.

The government is also reviewing policies related to the relocation of slum dwellers, particularly in cases where beneficiaries are shifted beyond the stipulated five-km radius from project sites. A final decision on policy changes will be taken after consultations, Misal added.

The Brihanmumbai Municipal Corporation (BMC) is under scrutiny for potentially overlooking these violations. If found guilty, officials will face severe consequences. The vigilance audit aims to ensure transparency and accountability in the development and implementation of housing schemes in Mumbai, a city known for its complex and often contentious real estate landscape.

This move by the Maharashtra government is a significant step towards addressing the concerns of citizens and ensuring that developers adhere to regulations. It also underscores the need for robust oversight and stringent enforcement of housing policies to prevent such large-scale financial irregularities in the future.

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Frequently Asked Questions

1. What is the alleged housing scam in Mumbai?
The alleged housing scam involves developers misusing provisions under Development Control Regulations (DCR) 33(11) and 33(20)(b) to construct and sell commercial units and high-end residential flats instead of the required in-situ Permanent Transit Camp (PTC) and Project Affected Persons (PAP) housing. The total scale of the scam is estimated to be over ₹2000 crore.
2. Who raised the issue of the housing scam?
Mihir Kotecha, a BJP MLA from Mulund, raised the issue of the housing scam through a calling attention motion in the legislative assembly.
3. What actions has the government taken in response to the allegations?
The Maharashtra government has ordered a vigilance audit to investigate the allegations. Minister of State for Urban Development Madhuri Misal stated that stop-work notices have been issued in some cases, and strict action will be taken if it is found that BMC officials ignored the violations.
4. What is the role of the Brihanmumbai Municipal Corporation (BMC) in this issue?
The BMC is responsible for ensuring that developers adhere to the Development Control Regulations (DCR). The government is investigating whether BMC officials overlooked the violations and failed to enforce the regulations.
5. What policy changes are being considered by the government?
The government is reviewing policies related to the relocation of slum dwellers, particularly in cases where beneficiaries are shifted beyond the stipulated five-km radius from project sites. Final decisions on policy changes will be made after consultations.