Mega redevelopment project row goes to PMO

Stakeholder red-flags artificial inflation in project cost, and also the slashing of MHADA’s share in flats from 20 per cent to 13 per cent in Motilal Nagar project worth R36,000 crore, which is probably second only to Dharavi in size

The Motilal Nagar Vikas Samiti, an association of residents formed for the redevelopment of their colony in Goregaon West, has alleged a mega scam in the project sanctioned by the Uddhav Thackeray-led MVA government. The tender cost escalated by 60 per cent in just six months and MHADA’s share in the flats reduced sharply by nearly 7 per cent, alleged samiti joint secretary Nilesh Prabhu in their letter to the prime minister’s office (PMO). 

According to the Motilal Nagar Vikas Samiti, Maharashtra Housing and Area Development Authority (MHADA) floated a tender of Rs 21,918 crore in October. But, six months later, it increased the project cost to Rs 36,295 crore, the samiti alleged.

MHADA’s proposed cost for the facelift of merely 142-acre Motilal Nagar is much higher than the estimated cost for the redevelopment of over 600-acre Dharavi, which is pegged at about Rs 22,000 crore.

Motilal Nagar has both MHADA tenants and slum population, in Goregaon West

Accusing MHADA of relying on improper project reports for revision of prices, the Motilal Nagar Vikas Samiti has written a letter to the prime minister’s office (PMO) and demanded a thorough probe in the case.

Nilesh Prabhu, the Samiti’s joint secretary, told mid-day, “If one revises the tender cost, it would be by a few percent. But, cost revision and escalation of over 60 per cent and that too in a short span of six months sounds fishy.

“Not just that, MHADA’s share in flats has decreased to 13.29 per cent from 20 per cent previously. This is a loss to the housing authority... This looks like a big scam and hence we have asked for a detailed probe, preferably by central law enforcement agencies,” Prabhu added.

The share of the developer has increased from 56 per cent to 62.71 percent. Prabhu said that the reason cited by MHADA for cost revision was that the “architect who submitted the report had forgotten to include a few things during the preparation of the initial report based on which the tenders were prepared.”

What led to redevelopment

In 2013, Dharavi resident Manjula Kadir Veeran filed a PIL (public interest litigation) in the Bombay High Court alleging unauthorised extensions in Motilal Nagar. During the hearing, Motilal Nagar societies, who were not a party to the PIL, submitted an affidavit stating they want to redevelop the colony.

However, in 2016, MHADA intervened and said they will undertake the redevelopment of Motilal Nagar, which was built in 1960.

On October 13, 2021, MHADA floated a tender for the redevelopment of Motilal Nagar 1, 2 and 3—a MHADA colony spread over 142 acres in Goregaon West. MHADA opened the technical bids on December 14, 2021, and Adani, L&T and Naman group participated. Naman group was disqualified during the technical bid.

The samiti learnt about the revised cost when MHADA submitted an affidavit on February 8, 2022, in the HC during the hearing PIL hearings. The financial bid is pending approval from the court.

The redevelopment tender floated under the public-private partnership model (construction and development agencies) was aimed at rehabilitating nearly 3,700 MHADA tenants and nearly 1,600 families from the slum hutments (a total of approximately 5,300 families). Every tenant will get 1,600 sq ft of built up area, according to the government resolution (GR) passed during the MVA government.

‘It’s rigged’

The samiti believes that the price has been rigged to benefit developers and government officials. “Only a proper inquiry would bring the reality to the fore. Stringent and penal action should be taken against all those officials who are found guilty in this entire process,” the letter to the PMO mentioned.

The letter has also been dispatched to Chief Minister Eknath Shinde, deputy CM Devendra Fadnavis, Central Vigilance Commission of India and the Enforcement Directorate. Motilal Nagar Vikas Samiti, formed in 2012, is an umbrella body of 56 of nearly 70 societies in the colony.

While authorities from MHADA did not reply to messages or phone calls, former housing minister in the MVA government Jitendra Awhad told mid-day, “I have no role in this. So what can I say.”

The previous MVA government is facing a slew of inquiries ordered by the current dispensation, including the alleged scam in the Brihanmumbai Municipal Corporation’s works during the COVID-19 pandemic. 

1,600 sqft
Built-up area of each flat, as per the tender

5,300
No. of families to be rehabilitated

142 acres
Area of Motilal Nagar earmarked for redevelopment

Rs 21,918 CR
Initial cost of the project in Goregaon

Rs 36,295 CR
Revised cost of the redevelopment project

2016
Year redevelopment process began

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