Maharashtra orders high level probe into alleged Navi Mumbai housing fraud

The Maharashtra Legislative Council witnessed sharp exchanges during the Budget session on Wednesday after the state government ordered a formal high level inquiry into an alleged housing fraud in Navi Mumbai . Industries Minister Uday Samant told the House that a committee led by an officer of the Additional Chief Secretary rank from the Urban Development Department will examine whether builders and officials colluded to bypass mandatory affordable housing norms.

The controversy centres on the rule that requires developers to reserve 20 per cent of flats in residential projects for affordable housing , meant for economically weaker sections at regulated prices. NCP SP MLC Shashikant Shinde alleged that in several projects, particularly in Nerul, this reserved portion was either not constructed at all or was converted into regular flats and sold at full market rates , defeating the purpose of the policy.

According to the allegations, some developers allegedly obtained building permissions without clearly demarcating the affordable housing component or later modified plans to reduce or eliminate it. Shinde claimed that more than 2,000 affordable units across Navi Mumbai were not delivered as mandated. While no specific builders or project names were officially placed on record, the charge is that the reserved housing stock was effectively diverted for commercial gain, potentially causing significant financial loss to the public exchequer and depriving eligible buyers of subsidised homes.

A dispute between the City and Industrial Development Corporation and the Navi Mumbai Municipal Corporation over building approvals has added another layer to the issue. Samant clarified that the authority to grant final building permissions rests with the municipal corporation, but said action will be taken against officials if they are found to have overstepped their jurisdiction or ignored violations.

The government has indicated that departmental and legal action could follow against both officials and developers if wrongdoing is established. However, it has not yet clarified whether affected buyers will receive the promised affordable units, alternative allotments, or refunds. The inquiry committee’s findings are expected to determine accountability and recommend corrective steps.