Scrap guideline in redevelopment process, MGP urges CM

Consumer rights group Mumbai Grahak Panchayat has written to the Chief Minister of Mumbai, demanding the removal of a guideline that allegedly promotes corruption in redevelopment projects. The group claims that the presence of an authorised officer from the Co-operative Registrar's office at approval meetings has become a breeding ground for corruption, with bribes being demanded for approval. The group suggests that video recording the proceedings would provide evidence of transparent selection.

Mumbai: Leading consumer rights group Mumbai Grahak Panchayat has written letter to Chief Minister Eknath Shinde demanding that a particular guideline for mandatory presence for an authorised officer from Co-operative Registrar’s office at redevelopment project approval meetings should be scrapped as it has allegedly become a breeding ground for massive corruption.

HT Image

In his letter addressed to the CM and the Deputy CM, MGP chairperson Shirish Deshpande said that the government had revised a January 2, 2009, government resolution and issued fresh guidelines on July 4, 2019, aimed at bringing more transparency to the redevelopment of co-operative housing societies. Guideline no 17 issued under Section 79A of Maharashtra Co-operative Societies Act makes the presence of an authorised officer, deputed by Co-operative Registrar’s office, mandatory at Special Generalbody Meetings (SGMs) where developers are appointed for redevelopment projects. The authorised officer then issues a certificate affirming that the developer’s selection was done transparently and duly video recorded by the housing society.

Deshpande pointed out that this guideline has led to massive corruption in Mhada and private redevelopment projects. The letter said that MGP has observed that housing societies are in a fix as bribes are demanded when they intimate the Co-Co-operative Registrar’s office about a Special Generalbody Meeting and seek their approval.

He said MGP has learnt that in Andheri area, a hush hush rate card is pegged at ₹25000 to ₹30000 per tenement depending on the size of the society seeking redevelopment, while for Mhada redevelopment, the rate is around ₹20,000 per tenement. The date for SGM is approved only after this money is paid either by the society or the developer, the letter said.

Deshpande also pointed out that MGP has learnt that in some cases, the housing societies were told to conduct another SGM and do an “internal selection” of a developer as a “preferred developer” and inform the concerned developer in writing. After this, the developer is told to pay up without which the SGM date would not be finalised. Once the developer pays this amount, the SGM is finalised and a farce of selecting the same developer is carried out and the entire proceeding is duly video recorded, the letter said.

“This guideline is proving to be the root of corruption and should be removed immediately. Interestingly, neither the original GR of 2009 nor July 2019 mentions the requirement of any such certificate, but MHADA and BMC insist on such certificates during the approval of redevelopment projects,” the letter said.

Deshpande said the removal of this guideline will shorten the time taken for kickstarting the redevelopment process by two to three months and will not in any way affect the transparency in selection of developers. “The housing societies should video record the entire proceedings and preserve the recording in case in future any dispute arises over developer’s appointment. The recording could be produced as evidence of transparent selection,” the letter said.