Caught in a bureaucratic mess for years, the sprawling 45-acre Patra Chawl redevelopment project in Siddharth Nagar area of Goregaon West may soon be back in the news.
A high-powered committee appointed by the state government to look into the project chaos has in its report suggested that MHADA should buy back the resale component that the beleaguered Rakesh Wadhawan and his son Sarang (the project handlers) sold to a third party, six of nine prominent real estate developers.
The Patra Chawl Redevelopment Project Scam
The Wadhawans were the directors of Guru Ashish Construction Pvt Ltd (a subsidiary of Housing Development and Infrastructure Ltd; HDIL), which had won the redevelopment project before major irregularities surfaced in it more than 12 years ago. Based on a complaint filed by MHADA, the Economic Offences Wing had registered an FIR and the Enforcement Directorate (ED) started an investigation. Later Shiv Sena leader Sanjay Raut was arrested in the complicated case and was granted bail within three months.
A total of nine developers had been sold floor space index (FSI)/plots by the Wadhawans from their developer share in the project without keeping MHADA in the loop. Of these, three developers (Kalpataru, Ekta World and KBJ Builders) had completed work and MHADA had granted occupation certificates in March this year following directives from the court.
Committee's suggestions
The committee headed by retired judge DK Deshmukh, which is scheduled to meet Deputy Chief Minister Devendra Fadnavis soon, has suggested that of these nine ‘for sale’ plots, MHADA should buy back the remaining six undeveloped ones after paying the developers an amount equivalent to what was paid to Guru Ashish, with 9% interest.
The committee, it is learnt, has suggested that as not much work has been done by the remaining six developers, the free sale component plots can be reclaimed and redeveloped by MHADA. However, a decision to this effect will be taken by the government.
Meanwhile, besides ED, the CBI is also investigating the route of the funds allegedly siphoned by the Wadhawans after selling their share of the project to nine developers. “Nobody knows what the Wadhawans have done with the money after selling their free sale component,” a top MHADA official told the FPJ.
MHADA completes work on rehab portion of project
Officials added that MHADA has completed work on the rehab portion of the project, which includes 16 towers where 530 verified Patra Chawl tenants will be rehabilitated. “The towers are ready. Some internal finishing and infra work is in progress. By May 2024, we will be inviting the tenants to take possession,” an official said.
As for MHADA’s own share of the project, which includes a total of five plots, officials said that only one has been developed so far. Of the four towers on this single plot, three are complete and one will be ready by 2025. Sources said that the government will decide on the remaining four plots.
Since the arrest of the Wadhawans, this prime land parcel has been in the throes of a heated battle between over 1,700 home buyers, nine developers, MHADA and the original tenants of the plot. In March this year, MHADA issued occupancy certificates (OC) to two of the for-sale developments, sparking optimism. This came after a high court ruling on a petition filed by 15 home buyers from Ektra Tripolis project. The court directed MHADA to issue the OC to not only Ekta Tripolis but also similar complete projects.
Tenants' protests
The tenants have petitioned everyone from various chief ministers and the Prime Minister. Their collective dharna outside the MHADA building caught the attention of policy makers and the public. In October, disgruntled home buyers surprised everyone by turning up at the CREDAI-MCHI flagship event in BKC, to protest at Kalpataru’s stall, holding up ‘Give us our homes’ placards.
