Mumbai’s Siddharth Nagar, more popularly known as Patra Chawl, has become the heart of a massive controversy. This after the arrest of Shiv Sena’s Rajya Sabha member Sanjay Raut. Raut, a close aide of former Maharashtra chief minister Uddhav Thackeray, has been accused of money laundering while the Patra Chawl was under redevelopment, beginning in 2008.
What is the controversy?
Patra Chawl is located in the suburbs of Mumbai at Goregaon East and is spread over 47 hectares. Years ago, it comprised 672 houses in total. But in 2008, Maharashtra Housing and Area Development Authority (MHADA) decided to redevelop the area. A contract was awarded to a company named Guru Ashish Construction Private Limited (GACPL) to redevelop Patra Chawl and rehabilitate the 672 families.
The parties came to an agreement that each family would get a flat and the remaining area would be developed by private builders. The agreement was signed by MHADA, the tenants’ society of the area, and Guru Ashish Construction Private Limited (GACPL). But 14 years later, the dream of a new home still evades the 672 families and others.
Ground realities
When CNN-News18 visited the area, construction work was still on but at a snail’s pace. A board at the entrance that was put up in 2008, which gives details of the project, has gathered rust just like the dreams of many families.
According to the Enforcement Directorate, the directors of GACPL, which was awarded the contract by MHADA, had several directors close to Sanjay Raut. This also included Pravin Raut, who has also been arrested by the federal agency. A senior source from the ED said, “They sold FSI to nine private developers for Rs 901.79 crore and didn’t develop flats for the 672 families nor the MHADA portion.”
GACPL constructed a project called MEADOWS and took a booking amount of Rs 138 crore from prospective flat buyers. In 2010, ED sources tell CNN-News18, Rs 83 lakh was allegedly given to the wife of Sanjay Raut, who bought a flat in Dadar, Mumbai, which has now been seized by the agency.
Later, due to nonpayment of rent and other irregularities, MHADA sent a termination notice in 2018 to the developers. The nine developers then moved the Bombay HC, and the entire project was stalled, as were the dreams of many.
One of the tenants that CNN-News18 spoke to said, “Today barely a few of us live here. Many have moved to rented homes in further suburbs such as Palghar, Virar, Vasai, Thane, etc. They can’t afford the rent here.” He chose to remain anonymous, citing the political angle in the controversy.
Then, in June 2021, the project was restarted based on a government resolution. In February 2022, the construction work began again. Now MHADA is supposed to develop the project entirely and give possession to the 672 families besides completing work on 306 flats for those who had paid and won a lottery for possession of the flats. Three housing societies by private developers are almost complete.
‘Still waiting’
Pankaj Dalvi, convener of the Siddharth Nagar Tenants Association, told CNN-News18, “We have three main demands. One is that the work pace should increase. Second, the rent that was promised to us should be given and it should be a minimum of Rs 40,000 a month. Finally, we want that all our other demands should be met as promised in the tripartite agreement.”
When asked to comment about the arrest of Sanjay Raut, Dalvi, who is a senior journalist from Mumbai, chose to steer clear. “We have all decided not to comment nor are we interested in talking about the political controversy. We were tenants here once upon a time and 14 years later we are still waiting for our flats,” he said.
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