DB Realty at Centre of ₹5,000 Crore Malad PAP Fraud.

Mumbai’s Rs 5,000 Crore Malad PAP Scam Exposed

• DB Realty at Centre of Massive Mumbai Land Scam, Alleges Congress MP

• No Development Zone to Real Estate Gold: The Rs 5,000 Crore Mumbai PAP Fraud

• The Core Allegation: A Deliberate Land Scam

A Sprouts News Special Investigation has exposed a ₹5,000 crore land scam in Malad, Mumbai. MP Varsha Gaikwad alleges a conspiracy to illegally convert No Development Zone (NDZ) land into a PAP project, benefiting DB Realty through inflated TDR credits and waived charges. The 8.71 lakh sq ft plot near Sanjay Gandhi National Park is at the centre of the scandal, triggering calls for a judicial and ED-led investigation into the massive fraud.

 Mumbai’s “Largest PAP Scam”: MP Varsha Gaikwad Exposes Rs 5,000 Crore Malad Land Fraud

Sprouts News Special Investigation Team: A massive Rs 5,000 crore plot scandal has shaken Mumbai’s civic landscape. MP Varsha Gaikwad alleges a deliberate conspiracy to defraud the city. She claims the Maharashtra government favoured a prominent builder, DB Realty.

The alleged fraud involves an 8.71 lakh sq ft hillock plot near Sanjay Gandhi National Park. Accusations include illegal land use conversion and massive financial irregularities. This has prompted calls for an immediate high-level investigation into the Malad PAP project.

From “No Development Zone” to Prime Real Estate

The prime plot was originally marked as a “No Development Zone” (NDZ). Mumbai’s Development Control Rules (DCR-2034) affirmed this classification in 2018. The land is ecologically sensitive, hilly, and lacks proper road access.

Despite these clear restrictions, a government order on 12 May 2023 worked a miracle. It suddenly reclassified the entire NDZ land into a Residential Zone. The plot was then exclusively reserved for “Police Housing” under this new zoning.

The Accommodation Reservation Policy Loophole

The police housing reservation appears to have been a mere gateway. On 20 June 2023, DB Realty bid to build 13,347 PAP tenements on the same land. This was under the BMC’s Accommodation Reservation (AR) Policy.

Rules mandate completing the primary reserved facility first. However, the Urban Development Department granted “simultaneous development” approval on 17 August 2023. This unusual move allowed both projects to proceed together, bypassing standard procedure.

Inflated Costs and Astronomical Gains

The financial engineering behind the deal reveals staggering potential gains. The BMC’s technical committee priced each PAP unit at ₹32.21 lakh, excluding GST. DB Realty, however, quoted an inflated rate of ₹58.18 lakh per unit.

The builder also demanded an extra ₹44 lakh per unit as “Viability Gap Funding.” This artificially inflated the project’s total valuation, maximizing the builder’s compensation through TDR.

Also Read: ED seizes Anil Ambani’s ₹3,084 Crore Properties in Probe.

The Artificial Delay and Revenue Loss

Municipal Commissioner Bhushan Gagrani suggested a rate re-check from the IGR. A deliberate delay ensued until a new, higher Annual Statement of Rates (ASR) was announced. This increased the builder’s premium from ₹4,299 crores to ₹4,741 crores.

Crucially, not a single brick has been laid, and the land title remains private. Yet, the BMC has already issued the builder credit notes worth ₹948.24 crores. The civic body also faces a revenue loss exceeding ₹100 crores from waived fees.

Environmental and Legal Violations

The project blatantly ignores critical environmental regulations. It lies within the eco-sensitive zone of Sanjay Gandhi National Park. This violates Supreme Court mandates on ESZs and National Board for Wildlife guidelines.

It was declared a “Project of Vital Importance” to fast-track approvals. This controversial status allowed the bypassing of standard environmental and legal scrutiny.

Demands for Action and Official Probe

MP Varsha Gaikwad has demanded the immediate cancellation of the Malad PAP project. She insists on the recovery of all credit notes and TDR already granted to the builder.

She has called for a time-bound, high-level inquiry into the entire scandal. Furthermore, she demands strict disciplinary and criminal action against all complicit officials. The Sprouts News investigation confirms the need for immediate transparency and accountability in this case.