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Anti Corruption Bureau probes Rs4.5-cr slum rehab ‘scam’

According to a complaint, the builder of the Prabhadevi Cooperative Housing Society has increased the number of tenants fraudulently in order to get extra Floor Space Index (FSI).

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Anti Corruption Bureau probes Rs4.5-cr slum rehab ‘scam’
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The Anti Corruption Bureau (ACB) is investigating an alleged Rs4,500-crore scam in a Slum Rehabilitation Scheme (SRA) building at Prabhadevi. 

According to a complaint, the builder of the Prabhadevi Cooperative Housing Society has increased the number of tenants fraudulently in order to get extra Floor Space Index (FSI).

The bogus names included in the tenants’ list of the building are allegedly of Brihanmumbai Municipal Corporation (BMC) employees. 

Rajnish Kumar Vishwakarma, a resident of the society, has filed the complaint against Ahuja Properties and Realtors. 

The developer had obtained approval for slum rehabilitation on plot no 1088 and 1087 at Appasaheb Marathe Marg, Prabhadevi.

The letter of Intent (LoI) procured in 2006 mentioned that the scheme is for 606 tenants, and 2.5 FSI is permissible under which the built-up area for rehabilitation is 21,523 square metres and built-up area for sale is 11,305 square metres. But the builder used an area of 19,821 square metres for rehabilitation and 19,571 square metres for sale. The market cost of this extra area has been estimated at Rs4,500.

The developer had allegedly submitted a bogus list of slum dwellers through the housing society twice in 2005. He also submitted bogus ration cards and electricity bills as proof.

However, the electric meters shown on the bills are not on BEST’s record (DNA has a copy of the BEST report).

In 2005, the developer allegedly submitted names of 211 bogus slum dwellers and got an FSI of 3 against them. The Slum Redevelopment Authority (SRA) approved the list and granted the extra FSI.   

The builder had shown that the density of the slum is more than 650 per hectare. The SRA rule says that if the density of slum is more than 650 per hectare, the builder can apply for more FSI. 

Jagdish Ahuja, director of Ahuja Properties and Realtors, however, refuted the allegations and said: “Our construction business is very transparent and there are no malpractices. We have all the legal papers and the work on as per government rules after obtaining permission from competent authorities.” 

He added that some “unsatisfied” people are making these allegations. “We have already rehabilitated 612 families and only 180 remain. However, we are paying them Rs9,000 per month as rent for the alternative accommodation. We are fulfilling our responsibility under corporate social responsibility. We are conducting computer and other classes for the kids in the same locality,” he said.

The ACB officers probing the scam said that they would register a case against the developers and others, including Baliram Pawar, the then SRA secretary, once the investigations were over.

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