Mumbai Police Unveils INR 150 Crore Housing Scam Linked to HDIL

Mumbai Police's Economic Offences Wing (EOW) has filed a chargesheet exposing an alleged housing scam worth approximately INR 150 crore. The scam involves possession documents of transit flats intended for at least 1,000 slum rehabilitation residents in Bharat Nagar. These documents were reportedly sold to third-party buyers, allowing unauthorized occupants to reside in prime transit housing in Mumbai. The HDIL Group, led by Rakesh and Sarang Wadhawan, is at the center of the investigation, though their legal representatives have denied direct involvement in these transactions.

A former HDIL officer, Chandrashekhar Dinappa Gowda, explained that the company had redeveloped nearly 3,000 slum structures across nine societies in Bharat Nagar. Of these, almost 2,000 huts were vacated for the project. The company allegedly purchased document files for about 1,500 shanties, including those belonging to eligible, ineligible, or unlisted residents. These files were stored in the accounts department and, starting around 2011, were allegedly sold for INR 15-16 lakh each. Buyers often provided pre-signed cheques, which were processed by senior officials, and possession letters were issued for transit flats in buildings 5 and 6 of the Kurla Premier project.

The flats were originally leased from the Slum Rehabilitation Authority (SRA) to house residents displaced by airport construction. About 1,200 residents were shifted to the transit camp, but investigators later found many original beneficiaries untraceable, with several flats occupied by those who had purchased hutment files unlawfully. EOW officials are examining whether any payments were made to the original slum dwellers whose documents were sold.

Investigations also revealed that HDIL allegedly defaulted on rental payments for these flats between August 2014 and March 2016, resulting in dues of nearly INR 44 crore. Complaints led to an FIR at Vinoba Bhave Nagar police station last year under sections for cheating, criminal breach of trust, forgery, and criminal conspiracy. The case was later transferred to the EOW, which reviewed project documents, financial records, and statements from over 60 witnesses before filing the chargesheet.

Both Rakesh and Sarang Wadhawan have denied direct involvement in selling possession files, stating that the project was managed by designated officials and they were not involved in daily operations. Investigators are also scrutinizing financial records and company transactions, noting HDIL faced financial distress and entered insolvency proceedings before the National Company Law Tribunal (NCLT). The Enforcement Directorate (ED) has conducted a separate probe into the company's financial dealings.

Lawyers for the Wadhawans have maintained that accusations regarding the sale of the shanties will be addressed in court once evidence is presented. This case adds to a series of legal and financial investigations into HDIL, including earlier probes linked to PMC Bank defaults, alleged misreporting, and asset attachments involving the promoters.