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MHADA has approved an allocation of INR 200 crore to reacquire three out of four disputed plots linked to the Patra Chawl redevelopment project in Goregaon West, Mumbai, following cabinet approval. This settlement addresses a contempt petition filed by builder Guruashish Constructions, a subsidiary of HDIL. The redevelopment, originally stalled by 2011, was taken over by MHADA in 2018 and completed by 2024. The payment will be recovered through sales of flats on these plots at market rates. The move resolves part of the legal disputes and restores rights over the land.
MHADA has sanctioned INR 200 crore to regain three of the four vacant plots tied to the Patra Chawl redevelopment project, part of a INR 1,039 crore dispute. This decision was cleared by the state cabinet and formalized through a government resolution issued last Thursday. The payment forms part of consent terms filed by MHADA before the High Court in response to a contempt petition by Guruashish Constructions, which was originally appointed for the project in 2008. Advertisement
The Patra Chawl redevelopment was initially structured through a tripartite agreement involving Goregaon residents, MHADA, and the builder, aiming to construct around 3,000 flats for 672 tenant families. By 2011, construction had stalled, and the original builder sold nine plots without authorization. The Enforcement Directorate reported that INR 1,048 crore was raised from these sales, most of which was allegedly diverted from the project.
MHADA assumed control of the stalled project in 2018 and completed redevelopment by 2024. Private societies were built on three plots, a fourth plot was reserved for rehabilitation, and construction continued on a fifth plot where a plinth had already been laid. The remaining four plots remained vacant, creating ongoing disputes over ownership and compensation.
In the legal proceedings, Guruashish Constructions sought compensation with 9% simple interest calculated from 2011. MHADA agreed to pay interest from 2018, the year it took over the project. While three builders accepted the arrangement, the fourth initially refused. Officials stated that following cabinet approval, the fourth builder also agreed to accept the payment, clearing the way for the reacquisition.
The allocated funds will be recouped through the sale of new flats built on these plots at market rates, as recommended by a government committee headed by former chief secretary Johny Joseph. This approach ensures that MHADA can recover the expenditure while also securing the land for housing obligations.
This move marks a significant step in resolving one of Mumbai's most high-profile redevelopment disputes, restoring MHADA's rights over key plots while concluding years of legal and financial uncertainty. It also reflects lessons from past delays and the need for stronger oversight in future housing projects to prevent mismanagement and fund diversion.
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