Mumbai Court Accepts ACB's Closure Report in Powai Real Estate Fraud Case
The special court in Mumbai has accepted the Anti-Corruption Bureau's (ACB) closure report in a high-profile case involving real estate magnate Niranjan Hiranandani and the Powai Area Development Scheme (PADS).
MumbaiReal EstateCorruptionPowai Area Development SchemeNiranjan HiranandaniReal Estate MumbaiJun 05, 2025
Special judge SE Bangar observed that the investigation was conducted fairly and concluded that it would be futile to prosecute the accused without substantial evidence. The court noted that the basis of the complaint lodged with the ACB was the order passed by the Bombay High Court in February 2012, following three Public Interest Litigations (PILs) that highlighted irregularities in the execution of the PADS.
“Much water has flowed under the bridge,” the court remarked, adding that the developer had complied with all the terms as admitted by the state government in its 2022 affidavit. The complaint was initially lodged by Mumbai Central resident Santosh Daundkar, who alleged a Rs 30,000-crore fraud by M/s Lake View Developers, a Hiranandani Group entity, in collusion with officials from the Mumbai Metropolitan Region Development Authority (MMRDA) and the Municipal Corporation of Greater Mumbai (BMC). Daundkar claimed that the scheme, intended for affordable housing, was diverted to construct luxury apartments, causing significant financial loss to the public exchequer.
After a preliminary investigation, the ACB filed a closure report on December 22, 2013, stating that they could not find any prosecutable evidence. However, the high court rejected this report on January 4, 2018, and ordered a reinvestigation. On August 30, 2019, the ACB filed another closure report, asserting that the complaint was based on mistaken facts. Daundkar then filed a protest petition, challenging the closure report and raising three major issues: the construction of luxury units instead of affordable housing, the failure to hand over 15% of the developed flats to the state, and unauthorized amalgamations and commercial exploitation of land meant for low-income residential use.
The ACB noted that the developer had handed over 17,146.05 sq mt of constructed area to the MMRDA, arguing that the civil and regulatory controversy left no room for criminal prosecution. Former IPS officer turned lawyer YP Singh, who represented Daundkar, said the court's order has opened up more questions. “There are serious legal and Constitutional issues involved, which can only be resolved by the high court and the Supreme Court,” he stated.
The decision by the special court to accept the ACB's closure report has significant implications for the PADS and the broader issue of real estate development in Mumbai. It underscores the complexities and challenges in addressing allegations of corruption and misuse of public resources in large-scale development projects. The case continues to be a point of contention, with legal experts and activists calling for further scrutiny and transparency in the execution of such schemes.
Frequently Asked Questions
What is the Powai Area Development Scheme (PADS)?
The Powai Area Development Scheme (PADS) is a project aimed at developing affordable housing in the Powai area of Mumbai. It was initiated to address the housing needs of low-income residents and involved significant land development and construction efforts.
Who is Niranjan Hiranandani and what is his role in the PADS?
Niranjan Hiranandani is a prominent real estate developer and a key figure in the Hiranandani Group. He was involved in the development of the Powai Area Development Scheme (PADS) through his company, M/s Lake View Developers.
What were the main allegations in the complaint against Niranjan Hiranandani?
The main allegations included a Rs 30,000-crore fraud, the diversion of land intended for affordable housing to construct luxury apartments, the failure to hand over 15% of the developed flats to the state, and unauthorized amalgamations and commercial exploitation of land meant for low-income residential use.
What did the Anti-Corruption Bureau (ACB) conclude in their closure report?
The ACB concluded that there was no prosecutable evidence to support the allegations of fraud and misuse of public resources. They stated that the complaint was based on mistaken facts and that the developer had complied with the necessary terms and conditions.
What are the next steps in the legal process?
The special court has accepted the ACB's closure report, but the case may still be subject to further legal scrutiny and appeals. Legal experts and activists are calling for higher courts to review the decision to ensure transparency and accountability.
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