Mulund Land Scam: FIR Filed Against Developers, Blinkit And Gym Owners Over Illegal Commercial Use Of Welfare Plot

Mumbai, May 13: In a significant case of alleged misuse of designated public welfare land, the Navghar police have registered an FIR against developers Champalal Vardhan and Kunal Vardhan, along with Blinkit Commerce and the owners of a gymnasium, for allegedly fraudulently converting a reserved plot into a commercial facility in Mulund East.

According to the FIR, the complaint was filed by Amar Rambhauji Khandar, 50, Deputy Chief Engineer (Building Proposals), Eastern Suburbs, Brihanmumbai Municipal Corporation (BMC), based in Vikhroli West.

Official records reveal that the land bearing CTS No. 43/44/45/4B at Neelam Nagar, Mulund East, was granted development permission on March 10, 1988, strictly for the purpose of a social welfare centre and dispensary, following a municipal resolution dated February 25, 1988.

Subsequently, Intimation of Disapproval (IOD) approval was granted on June 22, 1988, in the name of developer Champalal Vardhan and others, and an Occupation Certificate was issued on April 13, 2005.

Premises allegedly used for commercial operations

However, on October 24, 2025, municipal authorities received information that a large-scale commercial operation was being run from the premises meant for public welfare. Upon inspection, it was found that the site was being used as a distribution centre by Blinkit.

Further investigation of official documents revealed that developer Kunal Vardhan had entered into a leave-and-license agreement dated February 27, 2025, with Blink Commerce and Sanskar Realtors Pvt. Ltd. for commercial use of the ground floor, contrary to the original sanctioned purpose.

Despite prior action taken in 2023, when an offence was registered against the developer at Navghar police station under Section 52 of the MRTP Act, the premises continued to be used by Blinkit and a gymnasium. The T Ward officials conducted a site inspection and sealed the premises on October 25, 2025.

Police register FIR under BNS provisions

A subsequent report dated January 21, 2026, by the Executive Engineer (Development Planning), Eastern Suburbs, concluded that the developers had deliberately misused the land for personal gain, thereby defrauding the municipal corporation.

Further action was taken on February 2, 2026, when Assistant Engineers from the Development Planning department took possession of the premises and handed it over to the Maintenance Department.

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Based on the complaint and findings, Navghar police have registered a case under Sections 318(4) and 3(5) of the Bharatiya Nyaya Sanhita (BNS) Act, and have initiated further investigation.

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