Mumbai: MHADA Files ₹3.62 Crore Fraud Case Against Developer In Nagpada

Mumbai: The Maharashtra Housing and Area Development Authority (MHADA) has filed a fraud case worth ₹3.62 crore against a developer in the Nagpada area. The FIR has been lodged under Sections 34, 420, and 406 of the IPC at Nagpada Police Station. Further investigation has been handed over to the Economic Offenses Wing (EOW).

In his complaint, MHADA's Deputy Engineer, Anil Thackeray, informed the Nagpada Police that in 2004, the redevelopment of an old building in the Tardeo division was approved, granting the developer 2.5 FSI. As per the agreement, the developer was required to transfer 264 square meters of space to MHADA. However, instead of transferring it, the developer sold the six flats to private individuals. According to the ready reckoner, MHADA suffered a loss of ₹3,62,50,874 due to this fraudulent act.

MHADA explained that it is not feasible for the authority to redevelop all buildings independently. Therefore, if residents collectively agree to redevelop through a private developer or by themselves, they are provided with free residential flats or commercial plots. In exchange, developers receive 50% to 70% additional built-up area.

The EOW is now investigating the case to determine the extent of the fraud and take appropriate legal action against the developer.