Mumbai, March 18 The Maharashtra government announced an inquiry into alleged large-scale irregularities in a land tender process for project-affected persons in Mumbai's Malad area on Wednesday, and directed that no further action be taken until the investigation is complete.
The inquiry will be conducted by an additional chief secretary, and necessary instructions will be issued to the municipal corporation in this regard, Minister of State for Urban Development Madhuri Misal told the assembly.
The issue was raised through a calling attention notice by Aslam Shaikh (Congress), with supplementary questions by members, including Yogesh Sagar and Murji Patel (both of BJP).
The members alleged that in the land allotment case, the developer was granted Transferable Development Rights (TDR) and a premium far in excess of what was due, raising concerns of possible corruption.
They demanded a probe into the matter by a retired judge-headed committee.
Responding to the concerns, Misal said the government would first conduct a detailed inquiry through senior officials before deciding on further action.
Shaikh alleged serious irregularities in the PAP (Project Affected Persons) housing project in Malad (East).
The land parcel, originally reserved for police staff quarters, was diverted for PAP housing, and the cost per housing unit was increased from Rs 32.21 lakh to Rs 50.98 lakh after April 2025, he claimed.
This revision resulted in an additional financial burden of around Rs 618 crore, the legislator said.
The land valuation was hiked from Rs 84,460 per sq metre to Rs 1.33 lakh per sqm without any fresh survey or independent assessment, raising suspicion of possible collusion, he charged.
The MLA also questioned the grant of 50 per cent TDR and premium in advance, purportedly in violation of tender conditions.
He demanded a high-level inquiry into the matter, suspension of the revised Letter of Acceptance (LOA), and action against officials involved.
Misal rejected the allegations and said the project was being implemented in accordance with the Development Plan 2034 and applicable regulations.
As per norms, 40 per cent of the land is earmarked for police housing, while the remaining 60 per cent is allocated for PAP tenements. The revised cost was based on the updated valuation approved by the Inspector General of Registration, she said.
Maintaining that due process was followed, the minister asserted the tender process was transparent and that payments were made in stages as per prescribed conditions. She denied any irregularities in the execution of the project.
