Maharashtra Lokayukta Investigates Rs 55 Crore TDR Scam in Chembur Housing Society
The Maharashtra Lokayukta has initiated an inquiry into a ₹55 crore scam involving the fraudulent acquisition of Transfer of Development Rights (TDR) by the Green Garden Apartment Co-operative Housing Society in Chembur. The probe includes allegations of forgery, embezzlement, and collusion.
Bmc CorruptionTdr ScamChembur Housing SocietyReal Estate FraudMaharashtra LokayuktaReal Estate MumbaiJun 04, 2025
The complaint, filed by Kamal Krishan Chopra, a resident and member of the society, centers around a prime land parcel measuring 26,285 square metres on W.T. Patil Marg in Chembur. Despite clear records indicating that the land remains wholly owned by the society, forged documents were allegedly submitted to claim that 7,284 square metres had been acquired by the government for a road-widening project decades ago.
Based on these manipulated records, the society was granted TDR worth ₹55 crore in August 2023. This decision came despite the same claim being rejected by BMC in 2022. The complainant alleges that this reversal, approved without any actual acquisition or legal basis, was a result of deliberate collusion between society office-bearers and municipal as well as revenue officials.
According to the audited financial statements of the society for FY 2023–24, ₹46 crore of the sanctioned TDR amount was monetised and credited to the society. However, a substantial chunk—₹20.38 crore—was reportedly disbursed as “consultancy fees” to two firms: JP Nestor and NV Consultants. One of these entities is believed to have direct links with the society’s chairman, Nitin Chaudhari, raising serious questions about conflict of interest and potential money laundering.
The complaint further accuses the managing committee of forging society resolutions, misleading members, suppressing financial disclosures, and manipulating statutory audit and tax filings to conceal the irregularities. The Lokayukta, after reviewing the initial evidence, has found sufficient merit to initiate an inquiry under various laws, including the Prevention of Money Laundering Act (PMLA), Benami Transactions (Prohibition) Act, and the Maharashtra Co-operative Societies Act.
In response to the complaint, the society’s legal team has dismissed the allegations as unfounded and lacking legal standing. They assert that the TDR transaction followed proper legal procedures and that the approvals were granted by competent authorities. The society had earlier challenged a cooperative department inquiry through a revision petition before the Minister of Cooperation, though this application was later withdrawn. The matter has now escalated to the Bombay High Court.
Nonetheless, the Lokayukta’s decision to proceed indicates a serious institutional response to what could be one of the largest TDR-related frauds in recent years. The scandal highlights broader systemic issues in Mumbai’s urban land compensation mechanisms—wherein overlapping administrative responsibilities, weak verification processes, and opaque financial practices continue to enable manipulation and exploitation of public policy instruments like TDR.
As the city strives to implement more equitable and climate-resilient development, cases like this raise important questions about integrity in land governance. The Lokayukta is expected to summon key officials from BMC, the revenue department, and the housing society in the coming weeks as part of the ongoing inquiry. The outcome of this probe could set a precedent for TDR approvals in Mumbai and beyond, and reinforce the need for stricter due diligence in urban compensation frameworks.
Frequently Asked Questions
What is the main allegation in the complaint filed with the Maharashtra Lokayukta?
The main allegation is that the Green Garden Apartment Co-operative Housing Society fraudulently acquired Transfer of Development Rights (TDR) worth ₹55 crore by submitting forged documents.
Who filed the complaint against the housing society?
The complaint was filed by Kamal Krishan Chopra, a resident and member of the Green Garden Apartment Co-operative Housing Society.
What is the primary piece of land involved in the TDR scam?
The primary piece of land involved is a 26,285 square metre plot on W.T. Patil Marg in Chembur, Mumbai.
How much of the TDR amount was reportedly disbursed as consultancy fees?
Approximately ₹20.38 crore of the ₹55 crore TDR amount was reportedly disbursed as consultancy fees to two firms: JP Nestor and NV Consultants.
What laws is the Lokayukta considering in the inquiry?
The Lokayukta is considering various laws, including the Prevention of Money Laundering Act (PMLA), Benami Transactions (Prohibition) Act, and the Maharashtra Co-operative Societies Act.
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