Ulhasnagar Illegal Construction Scam
• UMC Officers Under Fire
• Shimpi-Hirve Corruption Nexus
Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
Ulhasnagar faces a massive corruption scandal as whistleblower Bhushan Khatri exposes UMC officers Ganesh Shimpi and Manish Hirve. Allegations include illegal demolitions, scrap theft worth crores, fake GST bills, and extortion. Despite multiple complaints and ACB actions, no strict action is taken. Khatri demands SIT probe and fears for his safety.
Whistleblower Alleges Massive Corruption in Ulhasnagar Municipal Corporation
A shocking expose has surfaced from Ulhasnagar, where a senior citizen, Bhushan Khatri, has filed multiple complaints against two senior Ulhasnagar Municipal Corporation (UMC) officers—Nodal Officer Ganesh Shimpi and Ward Officer Manish Hirve—alleging serious corruption, criminal fraud, large-scale illegal constructions, and systemic loot of public property.
In his detailed representation to several top authorities including the Chief Minister, Chief Secretary, Urban Development Department, Anti-Corruption Bureau, Central Vigilance Commission, Income Tax Department, and Human Rights Commission, Khatri has sought immediate action, citing grave threats to his own life and that of his family. The complaint, accessed by Sprouts News Investigation Team (SIT), lays bare a deep-rooted nexus allegedly operating with administrative protection.
The Modus Operandi: Scrap Theft and Illegal Demolitions Worth Crores
According to Khatri’s allegations, nearly 200 to 300 buildings have been demolished in Ulhasnagar under the administration of Ganesh Shimpi and Manish Hirve. The demolition of these multi-storey RCC buildings generated scrap materials—iron, aluminum, copper, teak wood, and plastics—worth hundreds of crores. As per government procedures, this scrap should have been inventoried, stored at UMC Prabhat Samiti godowns, and auctioned after legal tenders. However, no such inventory was maintained, raising serious questions: Where did the scrap worth hundreds of crores vanish?
The Sprouts News Investigation Team (SIT) has learned that demolition contractors such as Nayan Lokhande, Baban Shukla, and Mehboob Shaikh were unofficially awarded multiple contracts, despite having no formal registration or documentation with UMC. Despite receiving work orders, they never submitted any GST-compliant bills to UMC over the past five years. As per legal norms, demolition contractors must pay 18% GST on services provided, but these financial records appear entirely absent, suggesting massive tax evasion and unaccounted cash transactions.
Fake GST Bills, Extortion & Property Tax Manipulation
Further, Khatri alleges that innocent landowners and flat owners have been systematically extorted. Fake demolition charges are fabricated and charged to property owners, with the UMC generating fraudulent GST bills under the supervision of Shimpi and Hirve. These fake amounts are later debited directly to property owners’ tax accounts as demolition fees—even though no such demolitions were performed.
In several cases, demolition contractors themselves financially compensated landowners to acquire the valuable scrap from these properties, while UMC officials pocketed the demolition charges fraudulently debited. According to Khatri, this organized racket has siphoned off crores of rupees in illegal earnings, demanding immediate SIT investigation by the Maharashtra government.
The Creation of the “Shimpi Empire” Inside UMC
The complaint highlights that Ganesh Shimpi, originally a steno clerk, was promoted to Nodal Officer despite multiple corruption charges and prior suspensions by the Anti-Corruption Bureau (ACB). With administrative protection and political interference, Shimpi now controls all four Prabhat Samitis of Ulhasnagar—ironically the bodies tasked with monitoring illegal constructions.
Each illegal construction project allegedly pays an upfront bribe of ₹1 lakh on day one. The bribe amount escalates based on the scale of FSI violations, plot encroachments, and illegal floor additions. Additionally, Shimpi allegedly demands ₹1 lakh from owners wishing to demolish dilapidated structures and similar bribes from demolition contractors. It is estimated that ₹4-5 lakh is collected daily through these illegal transactions, with no administrative checks.
Sprouts News Investigation Team (SIT) sources indicate that in the absence of elected municipal representatives over the past two to three years, Shimpi has functioned as a virtual feudal lord, granting approvals for over 2,000 illegal constructions in Ulhasnagar.
Also read: Maharashtra Faces ₹80,000 Cr Financial Crisis as Dues Go Unpaid.
Related Article: Ulhasnagar’s Municipal Scrap Scam: Officials Ganesh Shimpi & Manish Hirve Under Fire.
Related Article: Ulhasnagar Officials Shimpi & Hirve in ₹10L Corruption Scam.
Growing Illegal Wealth and Administrative Inaction
Multiple sources estimate that Ganesh Shimpi may have amassed an illegal fortune ranging between ₹100 crore to ₹200 crore during his tenure. Despite numerous complaints and ACB actions, no strict administrative action has been initiated, pointing towards a strong bureaucratic protection network.
The complainant, Bhushan Khatri, has filed Writ Petitions No. 1580 of 2025 and 2803 of 2025 in the Bombay High Court, seeking judicial intervention to force police and anti-corruption authorities to take action. He fears for his safety and that of his family, stating that Shimpi’s financial power allows him to influence goons and harm complainants.
Demand for SIT Probe and Elimination of Nodal Officer Post
Khatri has appealed for an immediate SIT investigation into the entire corruption network and the urgent abolishment of the Nodal Officer post, which he claims has become a tool for extortion and illegal construction. “If this post is eliminated, 70% of illegal constructions in Ulhasnagar will automatically stop,” he stated in his complaint.
This explosive case, now under the scanner of multiple state and central agencies, reveals not only financial fraud but a complete collapse of regulatory oversight in Ulhasnagar. The Sprouts News Investigation Team (SIT) continues its special investigation and will track further developments in what could become one of Maharashtra’s biggest municipal corruption scandals.
