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Around 127 families from Vartak Nagar in Thane have alleged that actions by TMC and MHADA during a redevelopment project denied them proper rehabilitation. The issue stems from older housing meant for project-affected persons, where official records were allegedly altered to classify occupants as civic staff. This affected eligibility and reduced flat sizes from earlier approved norms. While redevelopment has been completed, several residents claim they either received smaller units with restrictions or are still awaiting allotment, raising concerns about documentation, transparency, and fairness in the process.
Residents from Vartak Nagar in Thane have alleged that officials from the Thane Municipal Corporation (TMC) and MHADA worked in coordination in a way that deprived 127 families of their rightful rehabilitation benefits during a redevelopment project. Many of these families have been waiting for resolution since their buildings were demolished nearly a decade ago, and clarity on their eligibility and allotment is still pending in several cases.
The dispute relates to three buildings numbers 54, 55, and 56 constructed in the 1970s under a subsidised housing scheme by the then Bombay Housing Board. These buildings were meant to house project-affected persons (PAPs) along with a smaller number of civic staff. After the restructuring of the housing authority, these properties came under MHADA's control, but occupancy patterns remained mixed, with long-term residents living there for decades.
Residents have pointed out that original records showed a clear mix of PAPs and municipal employees across 240 units. However, during the redevelopment process initiated in the late 2000s, inconsistencies began appearing in official documentation. Lease records reportedly mentioned only civic staff as occupants, while sale-related records included PAPs. This mismatch later became a key issue affecting rehabilitation eligibility.
When MHADA issued its initial no-objection certificate (NOC) for redevelopment, it classified the buildings as occupied solely by civic employees. Based on this, the responsibility for rehabilitation was placed entirely on TMC. Residents have said this classification did not reflect the ground reality and effectively excluded many genuine occupants from formal consideration.
Residents also stated that they were not given access to important documents during the process. According to them, showing the buildings as occupied only by civic staff allowed authorities to move ahead without taking consent from all occupants, which is usually required in redevelopment projects. This has raised concerns about whether due process was followed at the time.
The redevelopment model was later shifted from a government-led approach to a public-private partnership. A revised NOC issued afterwards reportedly restricted the use of redeveloped flats only to civic employees, further complicating the claims of original residents. Several families have said that this change reduced their chances of being recognised as eligible beneficiaries.
Another key issue raised is the reduction in flat sizes. The original redevelopment plan provided for units of around 54 square metres. However, through a corrigendum, this was reduced to approximately 27.88 square metres. Residents have argued that such a major change should have required fresh approvals rather than being introduced as a modification, especially since it directly affected their rehabilitation entitlement.
The difference becomes more noticeable when compared with other MHADA redevelopment projects in the same area. Out of 63 buildings redeveloped in Vartak Nagar, residents of 60 buildings reportedly received units as per the original size norms. Only occupants of these three buildings were given smaller units, leading to questions about consistency in implementation.
Although redevelopment has now been completed and some families have been allotted flats, residents have pointed out that these units come with restrictions. Unlike their earlier homes, the new flats cannot be sold, rented, or transferred. This has reduced their financial flexibility and added to dissatisfaction among affected families.
At the administrative level, the state housing department has asked MHADA to submit a report on the allegations. However, there has been no clear update on how many families have been recognised as eligible or how pending cases will be resolved. Some former public representatives have reportedly questioned certain claims, but residents maintain that genuine beneficiaries have been overlooked due to record discrepancies.
Such disputes are not new in Mumbai's redevelopment sector. Past cases have also highlighted how documentation gaps, shifting policies, and lack of coordination between agencies can lead to prolonged uncertainty for residents. In this case, the combination of record inconsistencies, policy changes, and reduced entitlements has made the situation more complex for affected families.
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