Mumbai Housing Projects Under Scrutiny Amid INR 2,000 Crore Scam Allegations

A city-wide vigilance audit has been initiated in Mumbai to examine alleged irregularities in housing projects meant for project-affected people (PAP) and permanent transit camps. The decision comes after concerns were raised in the state assembly regarding a possible scam estimated at around INR 2,000 crore.

The issue was highlighted by BJP MLA Mihir Kotecha, who pointed to suspected violations under Development Control Regulations (DCR) 33(11) and 33(20)(b). These provisions allow developers to avail additional Floor Space Index (FSI) in return for constructing rehabilitation housing for PAPs and transit accommodation. It was stated that in several cases, developers may have used this benefit but did not fulfill the core requirement of building and handing over such housing.

Specific instances were flagged in areas such as Mulund, where property transactions worth over INR 100 crore were identified in projects that were expected to include transit housing. When viewed across multiple projects in the city, the total scale of suspected irregularities was estimated to be significantly higher.

The state government acknowledged that preliminary findings indicate lapses in some projects. It was conveyed that certain developers did not hand over the required housing stock to agencies such as the Slum Rehabilitation Authority (SRA) or the Brihanmumbai Municipal Corporation (BMC), even after availing the additional FSI. This points to gaps not only in compliance by developers but also in monitoring mechanisms.

Authorities have also observed that in a few cases, developers did not apply for occupancy certificates after project completion. This has made it difficult for officials to verify whether the approved rehabilitation components were actually delivered or replaced with saleable inventory. As part of the audit, approvals, construction status, and handover records of such projects are being closely reviewed.

Following the initial findings, stop-work notices have been issued in select projects where irregularities are suspected. Officials are also examining property registration data to track whether units meant for rehabilitation were diverted and sold. The audit is expected to cover all relevant projects across Mumbai and is likely to be completed within a defined timeline.

Once the audit is completed, the findings will be reviewed at a senior level. Authorities have indicated that strict action will be taken in cases where violations are established. This may include action against developers as well as officials if any negligence or oversight is identified.

Such concerns have been seen in the past as well in Mumbai's redevelopment ecosystem, where misuse of development benefits and deviations from approved plans have affected timely delivery of rehabilitation housing.