Maharashtra housing minister promises probe into Khotwadi slum scam

Mehta said the probe will be conducted by the Serious Fraud Investigation Office (SFIO) that works under the ministry of corporate affairs.

State housing minister Prakash Mehta on Wednesday assured a probe into the alleged scam in the Khotwadi slum rehabilitation scheme at Santacruz. Mehta said the probe will be conducted by the Serious Fraud Investigation Office (SFIO) that works under the ministry of corporate affairs. He was replying to complaints made by BJP legislator Ashish Shelar in the state assembly. “We will consider an SFIO probe, subject to the truth behind the allegations,” Mehta said.

Prakash Mehta (Kunal Patil/HT Photo)

Shelar, while raising the matter by calling attention motion, alleged that the developer of the scheme has raised Rs280 crore from Life Insurance Corporation of India (LIC), Ahmedabad by mortgaging the plot on which the Slum Rehabilitation Authority scheme (SRA) was underway. This was done despite the fact that the plot is owned by the Brihanmumbai Municipal Corporation (BMC). “The developer has cheated the people. How did the developer manage to mortgage a 7.34-lakh sqft property owned by the BMC?” said Shelar. Mehta, in his written reply, said that the developer was removed from the project in 2015 as there was no sufficient progress. Further, whatever has been done by the developer in his personal capacity has nothing to do with the SRA scheme, he stated. The SRA has not issued any no-objection certificate to the developer for any financial transaction, he said.