Possible Rs 300 cr scam in Andheri redevelopment project

Possible Rs 300 cr scam in Andheri redevelopment project

City’s well-known builder Rustomjee is under the lens for alleged irregularities in its redevelopment project at DN Nagar in Andheri. This comes after State Housing Minister Prakash Mehta accepted that prima facie, there seems to be a scam running into Rs 300 crore.

Replying to the attention motion raised by Congress MLA Naseem Khan, Mr Mehta said the Economic Offence Wing (EOW) has filed an FIR against Rustomjee builders, and the government is seeking final report of the investigation within 15 days.

In 2005, Vaidehi Akash Housing was chosen to redevelop eight buildings consisting of 480 flats. The company handed over the responsibility to Rustomjee Realty. As per the allegations, the company sold the commercial plots to around 300 people, but failed to handover possession. In addition, around 17,500 square meter FSI was added illegally, which led to irregularities worth hundreds of crores.

The builder was supposed to handover the possession to 480 original habitants of eight buildings by Gudhi Padwa (April 8). However, Mr Mehta informed that flat owners will now have to wait till Diwali. “Prima facie, there is an indication that irregularities have taken place. The EOW will submit its report, and action will be taken accordingly. Meanwhile, the government has decided to stay the construction on saleable area,” said Mr Mehta.

Mr Khan demanded the arrest of owners of Rustomjee, pointing out that the Housing Minister had himself acknowledged irregularities in the scheme. NCP leader Jayant Patil informed the assembly that the EOW has already recommended action against the builders. “Since the minister is not aware of this development, I assume that it is my duty to inform you that there is no need to wait for the report as it has already been submitted,” he said.

Leader of Opposition Radhakrishna Vikhe Patil asked the government reasons for not taking action against the builder. Mr Mehta said he was not aware about the completion of investigation by the EOW, and that he will gather complete information and initiate action at the earliest.

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