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A recent Comptroller and Auditor General (CAG) report has revealed that 40 private developers in Mumbai collectively owe INR 261.14 crore to MHADA for transit tenements provided during redevelopment projects spanning 25 years. These temporary housing units were meant for residents displaced from old or slum structures, with developers required to pay advance rent and a security deposit. Of the 43 developers allotted 3,357 transit units, only three have cleared dues. The report highlights ongoing financial irregularities and poor compliance in Mumbai's real estate sector.
A recently published report by the Comptroller and Auditor General (CAG) has revealed that numerous private developers in Mumbai owe the Maharashtra Housing and Area Development Authority (MHADA) a substantial amount of INR 261.14 crore for transit tenements. This debt stems from redevelopment projects that commenced around 25 years ago. Advertisement
Transit tenements are temporary housing units provided by authorities like MHADA to residents displaced from old, dilapidated, or cessed buildings, or those impacted by slum redevelopment schemes. These accommodations ensure that original tenants have a place to stay while their old structures are redeveloped into new, permanent homes. Developers undertaking these projects are often responsible for facilitating this temporary relocation, utilizing MHADA's transit housing stock.
The CAG audit specifically found that MHADA had allotted a total of 3,357 transit tenements to 43 private developers. According to the terms of these allotments, the private developers were obligated to pay one year's advance rent along with a security deposit equivalent to three months' rent at the time of receiving the transit tenements. However, only three of the 43 private developers had cleared their outstanding dues. The remaining INR 261.14 crore was yet to be recovered from the other 40 developers as of March 2022.
The Comptroller and Auditor General of India, as the nation's supreme audit institution, consistently scrutinizes government expenditures and receipts, often bringing to light inefficiencies and financial discrepancies in public projects. This finding by the CAG points to a recurring pattern of financial irregularities and non-compliance within Mumbai's real estate and housing development sector.
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