Mumbai: The Enforcement Directorate (ED) has issued summons to senior officials of the City and Industrial Development Corporation (CIDCO) as part of an investigation into an alleged Rs 60 crore land scam in Kharghar, Navi Mumbai. The case concerns the controversial compensatory allotment of a 2,500 sq. m. plot to Shiv Sena (UBT) Raigad district chief Shirish Narayan Gharat, despite evidence indicating that he had already sold the original land parcel before receiving the compensatory allotment.
At the centre of the controversy is the allotment of a 2,500 sq. m. plot in Sector 7 of Kharghar, granted to Gharat under CIDCO’s “one-for-one” compensation policy. The plot was provided in exchange for 25 guntas of land in Belpada village, Kharghar, originally acquired for public infrastructure projects such as the Metro rail and Raintree Road.
Gharat had claimed that his earlier landholding in Belpada had not been acquired by CIDCO. However, officials later obtained documents indicating that the original Belpada land had already been sold by the Sena (UBT) leader to a private developer prior to receiving the Kharghar allotment.
Following the revelation, CIDCO’s then Urban Settlement Officer, Asha Bansode, filed a police complaint against Gharat in September 2023, citing misrepresentation and fraudulent acquisition. The allotment was initially cancelled but was later reinstated following a relief order from the Bombay High Court.
In connection with the ongoing police investigation, the ED has now stepped in, launching a probe under the Prevention of Money Laundering Act (PMLA). According to sources, the agency has demanded all relevant documents related to the allotment, including internal correspondence, the original complaint, and the legal procedures followed prior to the compensatory land grant.
CIDCO officials have confirmed that the official linked to the case has responded to the ED summons. The agency is currently examining whether standard protocols were bypassed in Gharat’s case. It has raised concerns about how a plot earmarked for critical infrastructure projects, such as the Metro rail and Raintree Road, was sold without the knowledge of officials, especially considering that in 2018, the 25-gunta plot had been specifically selected for public use.
The ED is also evaluating whether the “one-for-one” compensation formula has been applied uniformly in other cases or if Gharat received preferential treatment.
The ED's money laundering probe is expected to scrutinize not only the validity of the compensation asset claim but also any potential financial gains from the alleged fraudulent transaction. The agency suspects possible criminal conspiracy, cheating, and breach of trust involving not only the Sena leader but also CIDCO officials and others involved in the land transfer process.
The case stemmed from an investigation by the CBD Belapur police. According to the complaint, CIDCO had initiated the acquisition of approximately 21 acres of land in Survey No. 474, Gut No. 17, located in Belpada village, Kharghar, Panvel taluka, Raigad district. However, 27 guntas were excluded from the acquisition process, including 25 guntas owned by Gharat. Since the land was vital for infrastructure projects like the Metro rail and Raintree Road, CIDCO agreed to compensate Gharat with an alternative land parcel.
The compensatory allotment was approved by CIDCO through Board Resolution No. 12036, dated May 8, 2018, and was subsequently sanctioned by the Urban Development Department in November 2020. Later, on February 23, 2022, CIDCO allotted Plot No. 19A in Kharghar to Gharat under Board Resolution No. 12535, with a formal “Agreement to Lease” registered on April 21, 2022.
However, CIDCO later discovered that, prior to the allotment of the Kharghar plot, Gharat had already sold his original Belpada land through two separate registered agreements dated January 20, 2022, to M/s K.S. Riya Infrastructure Pvt. Ltd. and M/s Vedbh Infrastructure Pvt. Ltd. for a combined amount of Rs 7 crore. Of this, Rs 1.98 crore had already been received. These transactions occurred before the compensatory allotment was made, in direct violation of CIDCO’s land swap policy, raising serious questions about the integrity of the process.
The discrepancy came to light in February 2023, when one of the developers approached CIDCO for a tripartite agreement. CIDCO’s internal inquiry found the sales to be valid, thereby rendering Gharat’s compensation claim invalid. Consequently, CIDCO cancelled the allotment and filed a police complaint in September 2023 for fraud and misrepresentation, alleging a wrongful gain of Rs 60 crore. The complaint alleged that Gharat violated the land swap policy, misled both CIDCO and the developers, and unjustly benefited from both transactions. He is accused of acquiring a high-value plot worth Rs 60 crore despite having already sold the land he claimed as the basis for compensation. CIDCO estimates that the total fraud resulted in a ₹60 crore wrongful gain to Gharat and private parties, and an equivalent loss to the authority.
Although Gharat obtained a relief order from the Bombay High Court and the allotment was temporarily reinstated, the ED is now probing whether CIDCO officials bypassed procedures and whether the compensation policy was misused. Gharat denies wrongdoing, claiming CIDCO officials are at fault and that he is being falsely implicated.
