Another MHADA scam? Activists allege that MRRB breached rules

Housing authority MHADA's board did not put out an advertisement before selling the flat which was part of the Masterlist. The recently conducted MHADA lottery excluded the Masterlist.

  • Another MHADA scam? Activists allege that MRRB breached rules
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Mumbai Repairs and Reconstruction Board (MRRB), a subsidiary body of MHADA, is in the limelight for all the wrong reasons. The MRRB board which is always on target for pulling out irregularities while allotting flats is being accused of doing the same, again.



What is the story?

Pethe, the president of Transit Camp Association Ability (TCAA) has alleged that MRRB carried out an 'out-of-turn' allotment of a flat in Shivaji Park, Dadar. It was handed over unceremoniously to two women; Sulochana Raut and Minakshi Raut in November, without putting out any advertisement, hence breaching the protocol.

Activists further alleged that the board under the MHADA overlooked hundreds of other applicants who were waiting for the same house since 2010 but allotted it to Rauts who became eligible for a flat in June.

The 309 sq ft house which costs INR 1 crore lies in Dadar's prime real estate area -  Shivaji Park and was handed over to the Rauts in November.


How is the allotment done?

Rents charged in cessed buildings — built in the first half of the last century — are protected under the Rent Control Act, which is frozen, as a result of which, the owners lost the interest in maintaining the buildings and handed them over to MRRB board to carry out repairs.

While doing this, MRRB collects cess on rent from tenants of these buildings.

Now when these buildings go for redevelopment, builders are given extra FSI and MHADA gets the pre-decided percentage of the real estate free of cost.

This flat was under the 'Masterlist' which is not included in the MHADA lottery. The lottery results were recently announced. 

After receiving the flats, it is then allotted to the residents staying in transit camps depending upon the years they have spent in transit camps by giving out advertisements.


MHADA to look into irregularities

Meanwhile, Pethe has written to MHADA's CEO Milind Mhaiskar to look into the matter.


Allottment is done by following all the rules and regulations, i.e. by publishing an advertisement. However, we have not checked the files of the Shivaji Park house and so we are not in a position to comment on it."


Teju Singh Pawar, Co-head, MRRB, MHADA.


Mumbai's high real estate prices result in controversies

Several cases have come to light over the last few months with MHADA involved. Actor Deepali Sayyad supposedly duped the MHADA and got a second house. The rates for some houses sold by the MHADA are also reportedly higher than that of private real estate companies like this one in Lower Parel.

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