The Maharashtra government on Wednesday announced an inquiry into alleged irregularities in a land tender for project-affected persons (PAP) in Mumbai`s Malad area.
The government has directed that no further action on the project should be taken until the probe is completed.
Minister of State for Urban Development, Madhuri Misal, told the state assembly that the inquiry will be conducted by an additional chief secretary and instructions will be issued to the municipal corporation accordingly.
Allegations raised in the assembly
The issue was highlighted through a calling attention notice by Aslam Shaikh (Congress), with supplementary questions from Yogesh Sagar and Murji Patel (both BJP). Lawmakers alleged that in the land allotment, the developer received Transferable Development Rights (TDR) and a premium much higher than what was due, raising suspicions of possible corruption.
Shaikh claimed that serious irregularities occurred in the PAP housing project in Malad (East). Originally, the land parcel was reserved for police staff quarters but was diverted for PAP housing. The cost per unit increased from Rs 32.21 lakh to Rs 50.98 lakh after April 2025, resulting in an additional financial burden of around Rs 618 crore.
The legislator also said the land valuation was hiked from Rs 84,460 per sq metre to Rs 1.33 lakh per sq metre without a fresh survey or independent assessment. He questioned the grant of 50 per cent TDR and advance premium, claiming it may have violated tender conditions.
Shaikh demanded a high-level inquiry by a retired judge-headed committee, suspension of the revised Letter of Acceptance (LOA), and action against officials involved.
Government defends the project
Responding to the allegations, Madhuri Misal rejected claims of wrongdoing. She said the project is being implemented as per the Development Plan 2034 and all applicable regulations.
According to the minister, 40 per cent of the land is earmarked for police housing while 60 per cent is for PAP tenements. The revised cost was based on updated valuation approved by the Inspector General of Registration.
Misal maintained that the tender process was transparent and payments were made in stages according to prescribed conditions. She denied any irregularities in the execution of the project.
Next steps
The Maharashtra government will first conduct a detailed inquiry led by senior officials to review the Malad PAP housing project, including land valuations, TDR allocations, and premium calculations.
Based on the findings, the government will decide whether to suspend approvals, take action against officials, or implement corrective measures to ensure transparency
