Nearly 17 years after the residents of Siddharth Nagar, also known as Patra Chawl in Mumbai’s Goregaon West, were displaced for a redevelopment project, over 660 eligible beneficiaries will now take possession of their rehab tenements.
The displaced residents showed their willingness after the Bombay High Court granted them a “last chance” to take possession and ordered the stoppage of transit rent from April 1, citing a third‑party expert report confirming the structural stability of the buildings.
Developers or developing authorities pay transit rent to eligible residents who vacate homes until permanent alternate accommodation is available.
Project launch in 2008
In 2008, the Maharashtra Housing and Area Development Authority (MHADA) took up the redevelopment project and awarded the contract to Guru Ashish Construction Private Limited (GACPL), a subsidiary of Housing Development and Infrastructure Ltd (HDIL).
The contract was to rehouse members of the society by constructing rehab tenements for MHADA in exchange for a free sale development component. A tripartite agreement was signed among GACPL, the tenants’ society, and MHADA. The tenants vacated their homes by 2009, but could not get homes they were entitled to for over a decade.
Developer bankrupt
The developer, GACPL (now defunct), stopped construction midway, defaulted on its obligations, and the redevelopment of the chawl remained stalled since 2014. The company eventually went bankrupt, leaving tenants without their rehab tenements, transit rent, and without clarity on the completion of the project.
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Legal disputes followed, including insolvency proceedings before the National Company Law Tribunal (NCLT). MHADA took over the responsibility to complete the project in 2018. In January that year, the Authority had issued a termination notice to the developer, citing non‑payment of rent, delays, and alleged irregularities in the project. Nine developers who had bought floor space index (FSI) from GACPL approached the courts, further stalling the redevelopment.
State government steps in
In 2020, the state government appointed a one‑member committee headed by retired chief secretary Johnny Joseph to recommend measures to complete the rehab project. The state considered the report in June 2021 and again approved the redevelopment.
Thereafter, a new contractor, Relcon Infraprojects Ltd, was appointed in 2022 by the then Uddhav Thackeray-led state government to complete the remaining work.
Money laundering case
Amid project delays, the Enforcement Directorate (ED) in August 2022 arrested Shiv Sena (UBT) MP Sanjay Raut and his alleged close associate Pravin Raut in connection with a money‑laundering case linked to the Patra Chawl redevelopment.
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The ED alleged that Pravin Raut and GACPL directors misled MHADA and sold FSI to nine developers for Rs 901.79 crore without constructing the rehab tenements or the MHADA component. The agency claimed that the proceeds of crime through “illegal activities” exceeded Rs 1,000 crore, with Sanjay Raut allegedly benefiting around Rs 2.25 crore in connection with the case.
However, a special court designated under the Prevention of Money‑Laundering Act (PMLA) granted Sanjay Raut bail on November 9, 2022. In its order, the court noted, “From the record materials and the discussion made it is clear how Pravin Raut is arrested for a pure civil litigation, whereas Sanjay Raut for no reason. This truth is glaring.”
In February 2023, the Bombay High Court questioned the ED while hearing a bail cancellation plea, asking why the central agency had not sought custody of the main accused, Rakesh and Sarang Wadhawan, who were HDIL promoters.
Bombay HC takes charge
In April 2023, after it was informed that the outer deadline to complete the project was May 2024, the Bombay High Court directed MHADA to pay transit rent to society members from the date it took over the project. The project received its Occupancy Certificate (OC) on April 1, 2025.
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That month, MHADA’s Mumbai Board held a computerised lottery, allotting rehab homes to 663 eligible members of Goregaon Siddharth Nagar Sahakari Griha Nirman Sanstha Limited (the association representing displaced residents of Patra Chawl).
However, residents refused possession, citing poor construction quality, including two instances of falling plaster and lift malfunctions. On October 14, 2025, they submitted photographs raising structural stability concerns. The high court noted that a third-party audit by experts from Veermata Jijabai Technological Institute (VJTI) was required.
In February this year, VJTI experts’ interim report found all eight buildings to be “sound, stable, and fit for habitation.”
However, MHADA claimed society members were preventing officials and contractors from entering the premises and handing over possession.
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On March 11, addressing MHADA’s grievances, the high court highlighted the Rs 18 crore burden on the state exchequer from the delayed Permanent Alternate Accommodation (PAA) agreement and observed that further strain on public funds must end. It warned that obstructing access to stable tenements would invite criminal prosecution for impeding public duty and ordered transit rent be stopped from April 1.
On March 27, the HC gave Patra Chawl members a “last chance” to enter into agreements and take possession within a week. If unresolved, the HC said, MHADA could allot flats to Project Affected Persons (PAPs) elsewhere or for other public purposes to prevent the flats from remaining vacant.
On April 2, the Bombay HC was informed that the final VJTI report confirmed structural stability and society members expressed readiness to take possession. However, the members also claimed that there were some unresolved issues.
Remaining disputes
The high court directed MHADA’s chief officer to hear all parties and resolve disputes related to the commencement of the defect liability period for the contractor, the term of the lease period, and the area to be leased in favour of the society.
