Mhada cancels allotment of 39 prime plots in Mumbai

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The Mhada vice-president and CEO, Mr.Satish Gavai announced on tuesday,19th June 2012,that Mhada had cancelled allotments of 39 prime plots which were given to ‘prominent personalities’ and ‘trusts’. In most of the cases these ‘prominent personalities and trusts’ were nothing more than front companies for politicians and their families. The regulation under which they were ‘distributed’ was the Regulation 16 of Mhada act. Most of these ‘allotments’ were under the watch of Vilasrao Deshmukh and Sushil Kumar Shinde (ex-cm’s of Maharashtra).
Most of these plots were reserved for affordable housing or schools and hospitals to charitable trusts. The politicians in control amended the rules to engineer this scam.
68 plots spread over 20 hectares of land were allotted at a negligible rate by a sub-committee of Congress and NCP ministers. Deshmukh sanctioned 52 and Shinde sanctioned 15.All the beneficiaries were politicians, builders, bureaucrats, housing societies and trusts controlled by Congress and NCP ministers.
This allotment of public housing plots was stopped in April 2004.
39 cases are still pending.
In one such case a 10,000 sq mtr plot in Oshiwara was meant for a hospital but was given to Nargis Dutt Trust. After it was sanctioned the land in 2000,the trust wanted to pay just Rs.1 (one) per year for a 99 year lease !!
The allotment was made for Rs.21 crores in 2007 which was subsequently reduced to 11 crores. The best part is that the trust has not yet paid its dues. The Trustee of this trust is none other than Congress MP Priya Dutt.
A CAG report of 2009 slammed the deal saying it was engineered to benefit the ‘trust’.
Other such plots were allotted to educational bodies controlled by Congress and NCP ministers. Some of them are…

  • Rahebar Foundation (NCP MLA Nawab Malik’s wife and sister are trustees)
  • Raigad Military school (Congress MLA Madhukar Chavan).
  • Kasegaon education society (Cabinet Minister Jayant Patil).Incidentally ,Malik and Patil were part of the Sub-committee that devised this entire policy and changed the rules, while Chavan was the chairman of Mhada.

The MP Mitra Charitable trust was allotted 6032 sq mtr plot in Goregaon for just Rs.40 lakh to build a school and playground but the trust divided the land into two and subleased it to 2 private firms that went on to construct on the portion meant for the playground of the school. Later it was revealed that the trust earns Rs.2.5 crore as annual rent from just one of the plots subleased to a school. Mhada now intends to seize such plots and create a land bank for affordable housing scheme for the masses. It will also buy land from private owners at Ready reckoner prices. Ready reckoner is the govt valuation of real estate in a particular area. It changes every year. Property taxes are also charged based on this.
All such allotted plots will now stand cancelled if the lease deed has not been executed by the trust with Mhada.

By Mayur

Mayur is a real estate professional based in Navi Mumbai for the past 20 years. His expertise in real estate includes every sphere of the real estate sector from legal to Building Construction to Vastu to home interiors. When it's not real estate, its either his fight against corruption or pulling focus (film making) with his NIKON D750 that keeps him busy. With over 9 million views of his pictures on Google Maps and over 1.3 crore views of his contributions, he has been designated as a Master Photographer by Google. He can be reached on 9987452642

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