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This is an archive article published on July 14, 1998

Conman renting MHADA houses held

MUMBAI, July 13: The police today arrested one person involved in illegal leasing of nearly 62 tenements in the Maharashtra Housing and Area...

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MUMBAI, July 13: The police today arrested one person involved in illegal leasing of nearly 62 tenements in the Maharashtra Housing and Area Development Authority transit camps.

Chairman of the Repair and Reconstruction Board Madhu Chavan revealed that officers of Economic Offences Wing (EOW) nabbed one Ayub early at 4 am on Monday capping a police investigation into the racket which was being in operation for the last one month.

Several cases for various offences have been registered against Ayub in the last four years. After he successfully evaded arrest by the police, the investigations were handed over to the Crime Investigation Department in June this year, Chavan stated.

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According to MHADA officials, Ayub had let nearly 40 tenements in the Kherwadi transit camps at Kherwadi at Bandra and 22 at Pydhonie on lease to unsuspecting families. For letting out each tenement he charged an astronomical Rs 75,000 to Rs one lakh as deposit and Rs 1,500 as rent while the MHADA charged people between Rs 35 toRs 50 per month. Explaining the modus operandi, Chavan said that Ayub would convince people living in dilapidated conditions to sign blank documents which said that as their building in under repair they need accommodation in the transit camps. The residents would sign the papers which were later produced before the MHADA officials to obtain vacation notices resulting in the allotment of tenements in the transit camps. However, while Ayub let out the transmit camp tenements, the residents in the old buildings were not informed. Thus unaware of the allotment in transit camps they continued to stay in their dilapidated buildings. In similar fashion, Ayub let 22 rooms at Pydhonie charging Rs 1,500 per month.

Chavan suspected the involvement of MHADA officials in this long time racket. The matter came to light four years ago but due to lack of concrete evidence, no action could be initiated, he added.

The MHADA officials realised the scale of the racket when they raided the Kherwadi transit camp as part of adrive to flush out illegal occupants.

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