Mumbai Congress Chief and MP Varsha Gaikwad alleged Rs 800 crore scam, involving BMC owned land for conservancy staff quarters located in Juhu allocated to builders for development.
The land was initially allocated to a construction firm for a slum rehabilitation (SRA) project over a decade ago. Subsequently, the BMC cancelled the allocation to develop the plot itself as it was awarded after violating rules. But recently, the BMC again allocated the land for redevelopment to a newly-formed construction firm, which claimed to be a promoter of the earlier construction firm.
Mumbai Congress chief and MP Varsha Gaikwad said, "Earlier, when Devendra Fadnavis was leader of opposition in the state, he had opposed handing over the plot to the builder for SRA, but recently it got allocated to his builder friend by the BMC in haste. I want to ask him, what has changed between then and now?" Congress claimed that around a decade ago, the BMC's improvement committee headed by the then BJP corporator too had rejected BMC's proposal to allocate the land to the builder.
In 2008, a prime plot spread over an acre in Juhu was allotted to Darshan Developer for redevelopment under the Slum Rehabilitation Authority (SRA) scheme. However, the project soon ran into opposition.
A confidential Brihanmumbai Municipal Corporation (BMC) report prepared in 2015 pointed out that the allotment violated multiple regulations. The developer had proposed to construct conservancy staff quarters at a separate location, which the report stated was in breach of Clause 92 (ddd) of the Mumbai Municipal Corporation (MMC) Act. The clause prohibits leasing a BMC-owned plot in such a manner. The move also conflicted with development regulations, which do not allow a designated ‘municipal housing’ plot to be relocated as a ‘housing for the dishoused’ plot unless the land is contiguous and under the same ownership.
The report further alleged that several other rules had been flouted in the process, particularly the awarding of the redevelopment contract without a tendering process. Under the plan, Darshan Developer was permitted to redevelop the Juhu plot for market sale while constructing staff quarters at a different site.
In 2022, the then BMC commissioner scrapped the No-Objection Certificate (NOC) granted to Darshan Developer after the project showed no progress, and formally notified the Slum Rehabilitation Authority (SRA). But in April 2025, a twist emerged. Mahadev Realtors Juhu Pvt Ltd, claiming to represent the new promoters of Darshan Developers, shot off a letter to the BMC chief. The subject line sought “revocation” (sic) of the NOC, yet the letter concluded with a request to “restore” it, an apparent contradiction.
However, the letter concluded with a request to "restore" the NOC. Subsequently, the BMC prepared a detailed report for discussion on June 9, which was approved by all concerned departments within a couple of days and signed by the BMC commissioner on June 13.
Gaikwad claims, "Even the BMC was in such a hurry that they didn't check that the developer was asking for 'revocation' of the NOC, and they 'restored' it. BMC needs to explain under whose pressure this was done. There should be a judicial inquiry and criminal action must be taken against those responsible."
