Vigilance Audit Ordered For Mumbai Housing Schemes Amid Allegations Of ₹2,000 Crore Irregularities

Mumbai: Minister of State for Urban Development Madhuri Misal on Tuesday assured the state assembly that a vigilance audit of housing schemes across Mumbai will be conducted within 30 days to probe alleged irregularities under Development Control Regulations (DCR) 33(11) and 33(20)(b).

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Strict Action Against Erring Officials, Developers

The minister said strict action would be taken against officials of the Brihanmumbai Municipal Corporation (BMC) if they are found to have misled the legislature or ignored violations by developers.

The announcement came after BJP MLA Mihir Kotecha raised concerns over alleged large-scale irregularities. He claimed that developers, instead of constructing “in-situ” Permanent Transit Camp (PTC) housing, had built and sold commercial units and luxury apartments. “In Mulund alone, flats worth over Rs 100 crore have been sold, while across Mumbai, the scam could be over Rs 2,000 crore,” Kotecha alleged.

Builders Failed to Hand Over PAP Housing: Minister

Responding to the allegations, Misal admitted that several builders had failed to hand over mandatory housing stock for Project Affected Persons (PAP) and PTCs to the Slum Rehabilitation Authority (SRA) or the BMC despite availing additional FSI benefits. “Stop-work notices have already been issued in some cases. If records show violations were overlooked, strict action will follow,” she said.

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Misal added that the audit will cover all such schemes across Mumbai, not just in Mulund, and a detailed report is expected within a month. A meeting will then be convened with the Housing Minister and Deputy Chief Minister Eknath Shinde to decide on punitive measures.

On the issue of relocating slum dwellers, the minister said the policy of shifting beneficiaries beyond a five-kilometre radius is under review. “We are considering changes to ensure PAP housing is not moved to far-off areas like Malvani or Mankhurd when the project is in locations such as Mulund. A positive decision will be taken after discussions,” she said.

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