Daijiworld Media Network - Mumbai

Mumbai, Aug 3: In a shocking revelation, several housing societies across Mumbai are under the scanner for corruption and favouritism in redevelopment deals, with managing committee (MC) members allegedly accepting lavish perks and kickbacks from builders to manipulate project allotments.

In one society in Khar, residents were stunned to learn their MC members had gone on an all-expense paid trip to Bangkok, funded by a builder lobbying for redevelopment rights. In another case in the eastern suburbs, a society chairman's son bagged software contracts worth Rs 6.5 cr, while his daughter landed a top position in a hospital—both reportedly due to builder influence.

A society secretary with a small printing press managed to secure a large contract to print the annual reports of a construction firm. Meanwhile, in Vile Parle, a woman member has taken her MC to consumer court for allotting her a lower-floor flat instead of the higher floor she was promised.

Redevelopment in Mumbai has emerged as a goldmine—not just for developers, but also for some managing committee members who hold significant sway over project decisions. According to builders and activists, these MCs often influence tenders, choose favoured developers, and, in return, receive disproportionate benefits such as additional space, sea-facing flats, and even free interiors.

Advocate K K Ramani, who advises several societies, acknowledged the growing awareness among residents but admitted that "underhand benefits" continue. “Earlier, members used to blindly trust the committee. Now, they are more informed. Yet, unethical practices persist,” he told TOI.

One developer claimed 75% of MC members have vested interests. “They want more area or direct cash deals,” he said. He also accused several project management consultants (PMCs)—appointed to assist societies in the redevelopment process—of turning into “super corrupt brokers” extracting crores from developers.

Another builder active in the Bandra-Khar belt alleged a PMC-MC nexus where tenders are rigged and kickbacks can range from Rs 5 crore to Rs 10 crore. “Redevelopment has become their payday,” he added, expressing surprise that many of these committee members already belong to affluent families.

Housing activist Chandrashekar Prabhu exposed how feasibility reports are inflated and committee members are paid off to approve PMCs who are already aligned with developers. “Builders even pay upfront to identify vulnerable families ready to sell. In some cases, MCs are promised free flats in other projects,” he said.

Advocate Vinod Sampat, while highlighting the role of genuine MCs who safeguard members' interests, warned that rogue members often draft agreements riddled with loopholes. “These can lead to massive tax and legal liabilities for society members,” he cautioned.

With redevelopment reshaping Mumbai's skyline, residents are now demanding greater transparency, stricter regulations, and independent oversight to ensure that what should be a benefit for all doesn't become a windfall for a corrupt few.