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The Maharashtra government has ordered an inquiry into repair tenders for nearly 16,000 old cessed buildings in South Mumbai after bids were found to be 100-140% below estimated costs. Lawmakers warned that such unusually low bids could let contractors illegally add floors and profit from selling flats. Additional Chief Secretary Aseem Gupta will review the contracts, with the state confirming that any violations will lead to cancellations. The legislator also urged lifting the stay on amendments to Section 79A of the MHADA Act, which would let authorities acquire unsafe buildings. The issue is critical as many pre-1969 structures face structural risks ahead of the monsoon.
The Maharashtra government has ordered a detailed inquiry into repair tenders for nearly 16,000 old cessed buildings in South Mumbai after bids were reportedly submitted far below the estimated repair costs. During a discussion in the state assembly, a legislator raised concerns that the tenders sent to MHADA were 100-140% below projected repair expenses. He highlighted that such low bids could allow contractors to illegally add floors and profit from selling the flats. Officials confirmed these irregularities have been noted and are under review. Advertisement
Aseem Gupta, the Additional Chief Secretary, has been appointed to lead the inquiry and verify the suspect contracts. The government has made it clear that any contracts found violating rules will be cancelled. The lawmaker also emphasized the need to lift the stay on amending Section 79A of the MHADA Act. The amendment would allow planning authorities to officially acquire buildings declared unsafe, a move considered urgent as authorities prepare for the upcoming monsoon season.
Cessed buildings, constructed before 1969, pay a maintenance cess to MHADA for upkeep. These buildings are particularly sensitive in South Mumbai, where aging structures face risks of water seepage, structural weakness, and potential accidents during heavy rains. The government has informed the Supreme Court about the ongoing inquiry, with the next hearing scheduled for January 15.
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