BJP MLA alleges Rs 2,000-crore housing scam in Mumbai; govt orders audit

17 March,2026 07:34 PM IST |  Mumbai  |  mid-day online correspondent

The Maharashtra government has ordered a vigilance audit into alleged irregularities in Mumbai housing schemes after claims of a Rs 2,000 crore scam involving misuse of development norms

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The Maharashtra government on Tuesday ordered a vigilance audit after a BJP MLA alleged a Rs 2,000 crore scam in housing schemes in Mumbai.

As reported by news agency PTI, the report of the audit is expected within 30 days, Minister of State for Urban Development Madhuri Misal told the legislative assembly.

Madhuri Misal further stated that action would be taken against officials of the Brihanmumbai Municipal Corporation (BMC) if they are found to have ignored violations of rules by developers, as per PTI.

Mihir Kotecha, BJP MLA from Mulund, raised the issue through a calling-attention motion.

He said, "Developers have misused provisions under Development Control Regulations (DCR) 33(11) and 33(20)(b), meant for in-situ Permanent Transit Camp (PTC) and Project Affected Persons (PAP) housing," as per PTI.

BJP MLA alleges Rs 2000 crore housing scam

In-situ PTC housing was shown in approved plans, but instead the developers constructed and sold commercial units and high-end residential flats, he claimed, adding that transactions worth over Rs 100 crore had taken place in Mulund alone and the total scale of the scam across Mumbai was more than Rs 2,000 crore, reported PTI.

Minister Misal admitted that certain irregularities had come to light, and some developers had failed to hand over mandatory housing stock to authorities despite availing additional Floor Space Index (FSI) benefits.

She further added, "Stop-work notices have already been issued in some cases. If it is found that sales took place and BMC officials ignored them, strict action will be taken," as cited by PTI.

Misal also said that the government is reviewing policies related to the relocation of slum dwellers, particularly the cases where beneficiaries are shifted beyond the stipulated five-km radius from project sites.

However, she also added that "a final decision on policy changes will be taken after consultations", as cited by PTI.

Maharashtra registered 2,163 investment-related cybercrimes

A total of 2,163 cybercrimes linked to investment scams were recorded in Maharashtra last year, and 455 people were arrested in connection with the cases, Chief Minister Devendra Fadnavis told the state assembly on Tuesday.

CM Fadnavis, who also oversees the home department, said the state has enhanced measures to combat cyber fraud, focusing on protecting vulnerable groups including women, children, and senior citizens, reported PTI.

"The Maharashtra Cyber Security Project has been implemented with advanced technology and skilled manpower, with headquarters at Mahape in Navi Mumbai," he noted in a written reply to a question by Congress MLA Aslam Shaikh.

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