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A special court in Mumbai has formally closed the long-running criminal case against real estate developer Niranjan Hiranandani, linked to the Powai Area Development Scheme (PADS). The closure follows a report from the Maharashtra Anti-Corruption Bureau (ACB), which found no substantial evidence of wrongdoing. The case stemmed from allegations that Hiranandani's firm, part of a 1980s tripartite agreement with the state, had failed to deliver promised affordable housing, instead building luxury residences on concessional land, allegedly causing a loss of INR 30,000 crore. The ACB's report found no proof of corruption or conspiracy, a view the court upheld, stating that further proceedings would serve no purpose. The verdict concludes a decades-old case surrounding one of Mumbai's major urban development projects and underscores the scrutiny on public-private real estate ventures.
A special court in Mumbai has formally closed criminal proceedings against real estate developer Niranjan Hiranandani in connection with the much-discussed Powai Area Development Scheme (PADS) land case. The decision followed the acceptance of a closure report submitted by the Maharashtra Anti-Corruption Bureau (ACB), which found no substantial evidence to justify prosecution. Advertisement
The ACB had been investigating allegations that Hiranandani's firm, which had entered into a tripartite agreement with the state government and a regional development authority in the late 1980s, failed to adhere to its original commitment of building affordable housing. The developer was accused of instead constructing high-end residential towers on land allotted at concessional rates, resulting in an alleged loss to the exchequer estimated to be around INR 30,000 crore.
However, the ACB's report concluded that there was no prima facie evidence suggesting corruption, dishonest intention, or criminal conspiracy. The court echoed this view, stating that the continuation of the case would be an exercise in futility and would not serve the interests of justice. It determined that the evidence did not meet the legal threshold required to prosecute Hiranandani or other parties named in the complaint.
This recent verdict brings closure to a case that has remained in the spotlight for decades, involving one of Mumbai's most prominent urban development projects. The decision has significant implications, particularly for how public-private real estate partnerships are evaluated under the lens of legal and regulatory compliance.
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