Gaikwad alleges 5,000-cr ‘PAP scam’ in Malad

Mumbai Congress president Varsha Gaikwad named DB Realty, now Valor Estate Pvt Ltd, as benefitting from the alleged scam. However, the developer has denied receiving undue benefits

MUMBAI: Mumbai Congress president Varsha Gaikwad on Monday demanded a high-level inquiry into what she alleges is the “biggest PAP scam in the history of Mumbai”.

Mumbai Congress president Varsha Gaikwad (HT Photo)

Gaikwad claims to have uncovered a scam worth ₹5,000 crore on a plot measuring 8.71 lakh square feet near the Sanjay Gandhi National Park (SGNP) in Malad east.

She alleges that the plot, classified as a ‘No Development Zone’ (NDZ), has been turned into a goldmine for a builder with close ties to the ruling BJP, by changing its reservation. It was reclassified as “police housing” and later included a project for project-affected persons (PAPs).

Gaikwad named DB Realty, now Valor Estate Pvt Ltd, as benefitting from the alleged scam. However, the developer has denied receiving undue benefits and said it was not a private commercial project but one that involves police housing and the rehabilitation of PAPs.

The plot, reserved as a “no development zone” (NDZ), was reclassified by the state government as a “residential” zone in 2023, after which it was reserved for “police housing”. This was done even though the land is in a hilly area; it has no access road and lacks other basic amenities.

According to rules, when a reserved plot is used for a project under the Accommodation Reservation Policy, the portion reserved for that purpose must be built and transferred to the municipal corporation before any PAP development can proceed on the remaining area, Gaikwad revealed. “But the rules were changed for the “favoured builder”.

On August 17, 2023, the state urban development department approved “simultaneous development” on the plot, permitting both types of construction to start at the same time, she further alleged.

Shahid Balwa, managing director, DB Realty, told HT: “The Malad (east) parcel, now owned by the Brihanmumbai Municipal Corporation (never owned by Valor Estate Limited nor a part of Borivali East National Park - SGNP), was reclassified by the Government of Maharashtra vide an order dated 12 May 2023 for public purposes, namely police housing and project-affected persons (PAP) rehabilitation.

“Pursuant thereto, the BMC issued a public tender and, on 11 October 2024, issued a Letter of Acceptance to a consortium for the construction and handover of approximately 13,374 PAP/affordable units on the said land,” Balwa said.

“This is a competitively tendered, public-purpose housing assignment for police and project affected persons, and not a private commercial development. Valor Estate Limited - a part of the consortium - therefore categorically denies that it has received any undue or irregular favour in relation to this project,” he added.