Congress alleges BMC aided Rs 5,000 crore ‘real estate scam’; officials say changing land use not ‘unusual’

She alleged that not a single brick has been laid for the police housing.

“On June 20, 2023, DB Realty (now Valor estate) participated in the tender floated by the BMC for Project Affected Person (PAP), whereby 13,347 PAPs (300 sq ft each) were to get house under the Accommodation Reservation Policy. In return, it was to get land TDR, construction TDR and credit notes,” she said.

Out of the entire area, 3.48 lakh sq ft has been reserved for police housing while 5.23 lakh sq ft is for PAP houses.

“As per the rules, while implementing a project under the Accommodation Reservation Policy on a reserved plot, it was mandatory to implement the PAP project on the remaining area only after the reservation for which the land is reserved is built and transferred to the civic body. But the rules have changed and on August 17, 2023, the Urban Development Department approved simultaneous development,” Gaikwad said.

As per the allegations, the cost of each PAP was inflated to Rs 58.18 lakh (including GST) from Rs 32.21 lakh (excluding GST) and an additional Rs 44 lakh as “viability gap funding” for each PAP was sought.

The Mumbai Congress chief alleged that the builder has pocketed more than Rs 1,000 crore through credit notes and land TDRs without laying a single brick.

“The government should immediately cancel the Malad PAP project. Recover all credit notes and land TDRs given to the builder in full. Conduct a high-level inquiry into the entire scam in a time-bound manner and take disciplinary and criminal action against every officer responsible for this loot,” she demanded.

A Senior official from the BMC said that the civic body does not change land use and only the Urban Development Department (UDD) is authorised to do so.

An official from the UDD said that changing land use is not an unusual move.

“If there are any irregularities, we will look into it, if we get an appropriate complaint,” the official added.

When contacted by The Indian Express, the real estate company said, “ The Malad (East) parcel, now owned by Brihanmumbai Municipal Corporation (never owned by Valor Estate Limited nor a part of Borivali East National Park – SGNP), was reclassified by the Government of Maharashtra vide order dated 12 May 2023 for public purposes, namely police housing and project-affected persons (PAP) rehabilitation. Pursuant thereto, the Brihanmumbai Municipal Corporation issued a public tender and, on 11 October 2024, issued a Letter of Acceptance to a consortium for the construction and handover of approximately 13,374 PAP/affordable units on the said land.”

“ This is a competitively tendered, public-purpose housing assignment for police and project affected persons, and not a private commercial development. Valor Estate Limited – a part of the consortium – and we categorically deny that Valor received any special or preferential treatment in this matter.” it said.

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