Builder Accused of Forgery in Mulund Redevelopment Project.

Mulund Redevelopment Fraud: Builder Accused of Illegal Land Grab, Placing 80 Families and Bank Loans at Risk

A Mumbai builder is accused of illegally grabbing government land for a Mulund redevelopment. Allegations of fraud and forged documents place 80 families at risk of homelessness and jeopardise bank loans, exposing systemic failures in urban governance.

Sprouts News investigation reveals forged documents, ignored court orders, and systemic failures in the “Saraswati Square” project, threatening a full-blown humanitarian crisis.

A major redevelopment project in Mumbai’s Mulund has descended into alleged fraud and legal violations. Residents of Maheshwari Apartments accuse builder Anand Dargar of Metro Group of a systematic conspiracy. Our investigation uncovers forged documents, ignored government orders, and a shocking illegal land grab. The future of around 80 families now hangs in the balance.

This threatens a severe financial and humanitarian crisis. The project, initiated in 2014, has been controversial from its start. The building was declared a dilapidated C-1 category structure to initiate redevelopment. Consent was obtained using a one-sided agreement that was never formally registered. This bypassed essential legal safeguards for homeowners from the very beginning.

Unilateral Plan Changes Breach Trust

The builder’s original documented plan promised two separate buildings. One was for Slum Rehabilitation Authority (SRA) tenements and another for original residents. This plan has been unilaterally scrapped without fresh consent. The builder is now constructing only a single tower. This tower will house SRA tenements, original residents, and new sale flats together.

Such a fundamental change violates original agreements. It typically requires transparent consent from all stakeholders, which was not obtained. A critical legal failure is the non-registration of the Permanent Alternate Accommodation Agreement (PAAA). The builder has not registered this mandatory agreement even three years after receiving the Commencement Certificate.

This directly contravenes assurances in the Development Agreement. It also flouts established High Court orders. It leaves residents with no legal proof of their promised future homes. This is a severe breach of trust and established legal protocol.

Financial Defaults and Allegations of Forgery

Adding to the insecurity, the builder has stopped paying monthly rents to displaced residents. This rent was guaranteed in the consent terms and registered Development Agreement. The stoppage constitutes a clear financial default, causing significant hardship for over a decade.

The Slum Rehabilitation Authority (SRA) issued Stop Work Notices for this default. Work has continued despite these official orders. Serious allegations of forgery in flat allotments have also emerged, fracturing families. One case involves a 2 BHK flat registered solely to an elder brother.

The legal share certificate clearly lists four legal heirs. All four had signed the consent forms. A direct order from the present Chief Minister in 2016 mandated all four names be on the PAAA. This order has been completely ignored, suggesting deliberate manipulation.

The Core Scandal: Disputed Government Land

The most severe allegation threatens the project’s very existence. A portion of the project land is allegedly reserved for a new court complex. Notices have been issued by the Collector to the builder for illegally incorporating this state government land.

This makes the entire constructed building potentially unauthorized. It is subject to a demolition order. Residents allege collusion between the builder and officials in the Collector’s office. Demolition orders have been repeatedly postponed, increasing peril for all stakeholders.

If demolition proceeds, around 80 families will be left homeless. Their lifetime investments will be reduced to rubble. This illegal land grab is the central scandal of the entire project. It exposes deep failures in urban governance and oversight.

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Bank Loans in Jeopardy Amid Due Diligence Failures

The crisis extends to major financial institutions. Around 15 flat buyers purchased units with home loans from major banks. These include HDFC Bank, State Bank of India, Central Bank, and Tata Capital. These institutions now risk their collateral being demolished.

Their legal teams seemingly failed to identify the disputed land title. This raises serious questions about the rigour of their due diligence processes. New loan sanctions are reportedly still proceeding despite known irregularities.

Buyers now face double jeopardy. They risk losing their homes while retaining loan liability for a non-existent asset. This mirrors wider concerns about builder-bank nexuses exposed in other national real estate scandals. The financial exposure is substantial and growing.

Political Echoes and Systemic Governance Breakdown

The scandal has reached political corridors. Former MLC Shri Jitendra Awhad (NCP) raised a specific issue in the Vidhan Bhavan on 2/07/2019. He highlighted a tenement in the name of a deceased person being transferred recently.

This points to possible document forgery within the SRA component. Such forgery constitutes a serious criminal offence. The collective failure of multiple oversight systems is stark. The society committee, BMC, SRA, Revenue Department, and Collector’s office all had roles.

Their alleged inaction or negligence has enabled this crisis. It highlights a systemic breakdown in Mumbai’s redevelopment governance. Citizens ultimately bear the cost when monitoring agencies fail to act on clear violations.

A Call for Urgent Intervention and Legal Recourse

The project is registered with MAHARERA (No.P51800050901). However, the authority’s recourse is often limited to new buyers, not original residents. A case has been ongoing for 2.5 years in the City Civil Court and Bombay High Court.

It has been filed by an affected resident, Mr. Rakesh Modi. The case details all the aforementioned wrongdoings. This information is reportedly not reflected on the MAHARERA website, potentially trapping innocent home buyers.

This Mulund case encapsulates Mumbai’s redevelopment woes. It shows risks from fraudulent builders, bureaucratic failure, and institutional blind spots. The Sprouts News investigation urges authorities to act before more families become victims. We will continue to track this story for accountability and justice.

Join the Fight for Justice

Investigator Unmesh Gujarathi and our team urge you to speak out. True change requires a collective voice. Challenge wrongdoing, demand accountability, and become part of the solution. For stories that defy the mainstream, visit –  sproutsnews.com