Maharashtra Orders Vigilance Audit Into Mumbai Housing Scam

25 Mar 2026 CW Team

The Maharashtra government has ordered a vigilance audit across Mumbai, to be completed within 30 days, to probe alleged irregularities in housing schemes under the Development Control Regulations. The announcement followed allegations by Mulund MLA Mihir Kotecha that developers misrepresented project plans and sold housing stock intended as in situ Permanent Transit Camp (PTC) units. The MLA estimated sales in Mulund at Rs 1 bn and said the citywide malpractice totalled about Rs 20 bn.

The Slum Rehabilitation Authority (SRA) acknowledged irregularities in some projects while the Assembly was told that Brihanmumbai Municipal Corporation (BMC) officers had provided misleading information. The allegations state that developers depicted PTC housing but instead constructed and sold commercial shops and luxury apartments, depriving eligible residents. The issues relate to builders availing additional floor space index benefits but failing to deliver mandated housing stock.

The Minister of State for Urban Development, Madhuri Misal, said several builders had not handed over mandatory PTCs and Project Affected Persons (PAP) housing stock to the SRA or the BMC despite obtaining concessions. Stop work notices have been issued in some cases and records will be scrutinised for evidence of unauthorised sales. The government indicated that strict administrative or legal action would follow if officials were found to have overlooked or facilitated such transfers.

The 30 days vigilance audit will review land records, sales registers and allotment documentation across affected projects to establish the extent of irregularities and recommend remedial measures. The exercise aims to ensure compliance with rehabilitation norms and to identify officials or developers liable for disciplinary measures or prosecution. Authorities will publish findings and advise on next steps after the audit concludes, including proposals for reforms.

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