Case Filed Against Builder for Selling Flats Reserved for MHADA in Tardeo Project
The Nagpada police have filed case against SK Realty, formerly known as Om Developers, for failing to hand over six flats to the Maharashtra Housing and Area Development Authority (MHADA) after the redevelopment of Wadia House, a cessed building in Gilder Lane, Tardeo. The flats, valued at ₹3.52 crore, were supposed to be transferred to MHADA but were instead sold privately by the construction firm in clear violation of the redevelopment agreement.
MHADA, which is responsible for providing affordable housing in the state, frequently partners with private developers to redevelop old, dilapidated buildings in Mumbai. These redevelopment agreements typically include provisions that grant developers additional Floor Space Index (FSI) in exchange for handing over a portion of the newly constructed area to MHADA. This arrangement is designed to ensure that the public housing authority receives a fair share of the redevelopment benefits, helping to address Mumbai’s chronic housing shortage.
In 2009, Wadia House was allocated to Om Developers for redevelopment under this policy. As per the terms of the agreement, Om Developers was required to hand over 264 square meters of the redeveloped area to MHADA. After receiving approval for the construction plans, the builder earmarked six specific flats—numbered 501, 503, 504, 505, 702, and 703—for MHADA. The current market value of these flats, as per the ready reckoner rates, is estimated to be ₹3.52 crore.
However, after the redevelopment project was completed, SK Realty allegedly failed to comply with the terms of the agreement. Instead of handing over the flats to MHADA, the firm sold them to private buyers, bypassing the contractual obligation. This unauthorized sale directly contravened the agreement with MHADA, and despite repeated demands from the housing authority for the flats to be handed over, the builder refused to comply. As a result, Anil Thakare, a Deputy Engineer at MHADA, lodged an official complaint with the police, leading to the registration of the case.
The police have booked SK Realty and its directors—Shantilal Makhecha, Ansaben Makhecha, Hemant Makhecha, and Madhavi Makhecha—under Sections 406 (criminal breach of trust), 418 (cheating), and 34 (common intention) of the Indian Penal Code (IPC). A senior police official remarked that the actions of the firm amounted to a serious breach of trust and cheating, as they deprived MHADA of its rightful share of the redeveloped property, which was intended for public use or allocation.
Senior MHADA officials have stated that they will pursue all legal avenues to retrieve the flats and ensure that such violations do not go unpunished. They have warned other developers that any attempt to breach redevelopment agreements will be met with strong legal action.
