By News Desk MUMBAI — In a major breakthrough for the city’s housing sector, the Maharashtra Housing and Area Development Authority (MHADA) has been authorized to pay ₹200 crore to re-acquire land trapped in the famous Patra Chawl scam. The state cabinet gave its final approval to the move this week, clearing the path to resolve a legal stalemate that has lasted nearly two decades.
The decision allows MHADA to reclaim three out of four remaining vacant plots in the Goregaon layout. These plots were part of a larger 47-acre site that became the center of a ₹1,039-crore financial scandal involving siphoned funds and unauthorized land sales.
Resolving the legal “Knot”
The funding is part of a “consent terms” agreement filed before the High Court. The original developer, Guruashish Constructions, had siphoned off nearly ₹1,048 crore by illegally selling project plots to third-party builders while the housing for 672 original tenants remained unfinished.
While many of the sold plots already have completed buildings or are under construction, four plots remained vacant. By paying this compensation, MHADA is effectively “buying back” the rights to this land. This settlement settles a contempt petition and ensures that the title of the land returns fully to the housing authority.
Financial recovery plan
According to government officials, the ₹200 crore expenditure will not be a loss to the taxpayer. The plan, recommended by a committee led by former Chief Secretary Mr. Johny Joseph, involves:
- New construction: MHADA will build new residential towers on the reclaimed plots.
- Market sale: These apartments will be sold at current market rates.
- Cost recovery: The revenue from these sales will be used to recover the ₹200 crore settlement and fund further housing initiatives.
Hope for displaced families
For the 672 original families and hundreds of additional homebuyers, this news marks the end of a long period of “legal limbo.” While the main rehabilitation buildings are nearing completion, reclaiming these additional plots allows for a more organized development of the entire locality.
“This is a decisive step toward clearing the debris of the past scam”, said a senior housing official. “It ensures that the Patra Chawl redevelopment project can finally proceed without the shadow of old legal disputes hanging over the land”.
Construction on the newly reclaimed plots is expected to begin once the formal land transfer is completed in the coming months, signaling a fresh start for the Goregaon neighborhood.
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Disclaimer – This article is provided for general informational purposes only. Readers should consult official government records or legal experts for specific details regarding property rights or ongoing legal proceedings.
Source – ET Realty
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