A special judge has observed that there is a case against Hiranandani constructions for blatant violations in its Powai project. The court also directed the Anti‑Corruption Bureau to investigate the matter and file a report. Along with Hiranandani, a few bureaucrats face the axe—among them, Mr. Thomas Benjamin, a secretary in the Urban Development Department. Mr. Benjamin curiously levied a ₹3 crore fine on Hiranandani for violations said to run into a few thousand crores, with some estimates pegging the scam value at ₹50,000 crore.
Mr. Benjamin revealed that the figure was derived from previous decisions of MMRDA and the government.
Residents of Hiranandani Complex may be unaware that their luxurious apartments, each worth a few crores, were originally part of the Powai Housing Development Scheme aimed at economically weaker sections.
The scheme, announced in 1977, planned to cover villages including Powai, Kopri, and Tirandaz—spanning 140 hectares. The state allotted 230 acres to Hiranandani at ₹1 per hectare, on the promise of constructing “affordable” housing for the poor.
Under the decade‑long contract between Hiranandani, the state, and the MMRDA, Hiranandani neither built affordable units nor delivered the mandated 15 % of residential units to the government.
Despite this, neither MMRDA nor BMC took punitive measures. Ultimately, Mr. Benjamin imposed a ₹3 crore fine—and deemed it sufficient.
Another day, another scam in the great nation of India.
📌 UPDATE: 4 March 2021
Mumbai: The Bombay High Court directed a committee to verify how many flats were built under the Powai Area Development Scheme, pursuant to its October 2017 deadline extension. The order by Chief Justice Dipankar Datta and Justice Girish Kulkarni came after Hiranandani sought more time to complete construction of Castle Rock, Regent Hill, Atlantis, Sorrento, and Maple.
In February 2012, following a PIL by activists Kamlakar Satve, Rajendra Thacker, and Medha Patkar, the High Court ordered Hiranandani to construct 1,511 flats of 40 sq m (430 sq ft) and 1,593 flats of 80 sq m (861 sq ft) before launching any other development.
These lands were leased in 1986 under a tripartite agreement with the state and MMRDA. Activists allege that affordable flats were merged into luxury apartments of 4,000–5,000 sq ft and sold at premium prices.
The HC granted a completion deadline of June 2021. Hiranandani has since sought extensions till mid‑2023, citing COVID‑19 delays.
📌 Latest Case Status (June 2025)
On 5 June 2025, a special court accepted the ACB’s closure report, clearing builder Niranjan Hiranandani and others—including bureaucrats—of corruption charges due to lack of prima facie evidence of criminal intent or conspiracy (niranjanhiranandani.com, moneylife.in, en.wikipedia.org, therealtytoday.com, timesofindia.indiatimes.com, indiatoday.in).
The court observed that Hiranandani had constructed various affordable units—including 1,511 flats of 40 sq m and 887 flats of 80 sq m—and handed over 256 to MMRDA in 2022 (therealtytoday.com). The Bombay High Court had earlier verified compliance and concluded no breaches, giving Hiranandani time extensions (therealtytoday.com). Closure was finalized on 2 June 2025 as criminal prosecution was deemed unwarranted .
🔍 Context & Observations
- Initial Allegations: FIR filed in 2011 alleged a ₹30,000–45,000 crore land scam, accusing Hiranandani and bureaucrats like Thomas Benjamin of collusion (moneylife.in).
- PIL Focus: Activists demanded delivery of mandated affordable flats—1,511 flats of 40 sq m and 1,593 flats of 80 sq m—before proceeding with luxury units (en.wikipedia.org).
- High Court Oversight: Set up verification committee in March 2021 to audit completed affordable flats (en.wikipedia.org).
- Final Outcome: Closure of criminal case in June 2025 — special court found no evidence of wrongdoing and acknowledged compliance with given orders and handovers (therealtytoday.com).
