More than 80 redevelopment projects in the Vasai-Virar City Municipal Corporation area have been halted over alleged approvals for additional floor space index, leaving original residents, homebuyers and lenders facing uncertainty, according to a report by Loksatta – Vasai-Virar. BJP MLA Rajan Naik has asked Maharashtra Chief Minister Devendra Fadnavis to immediately suspend the restrictions imposed on the projects.
The projects were approved between 2020 and 2025. A re-examination by the municipal corporation reportedly found that additional FSI had been approved in violation of applicable rules. The civic administration has consequently stopped the additional construction in all the projects under review.
The municipal town planning department has also written to district registrars asking them not to register sale deeds for homes and shops in these projects. The restrictions include limits linked to occupancy certificates and property registration, according to the report. The move has raised concerns over projects that are already under construction or have involved residents vacating their original homes.
Many original residents reportedly agreed to redevelopment after relying on approvals issued by the municipal corporation, sanctioned plans, commencement certificates and registrations with the state government’s Maharashtra Real Estate Regulatory Authority, or MahaRERA. Buyers also invested in homes and commercial units on the basis of these approvals. Nationalised and cooperative banks have reportedly extended loans to several of the projects.
The report said the combined exposure of citizens, investors and banks could exceed ₹1,000 crore. The figure represents the financial risk cited in connection with stalled construction, pending transactions and loans linked to the projects. The report did not provide a project-wise breakdown of the amount or identify the individual developments covered by the estimate.
Naik met Fadnavis at Mantralaya on Tuesday and argued that ordinary citizens should not bear the consequences of administrative and technical errors. He sought the immediate suspension of the restrictions and called for a special committee led by senior Urban Development Department officials to review each project separately.
The MLA also demanded that projects with technical discrepancies be given an opportunity to regularise them through premium payments or adjustments involving transferable development rights, wherever legally permissible. At the same time, he called for separate action against officials, architects and developers found responsible for violations.
The dispute places the municipal corporation’s approval process and the protection available to residents and buyers at the centre of the redevelopment issue. A blanket halt affects not only construction activity but also occupancy certification, registration of properties and the financial arrangements connected to completed or partially completed units. The report did not state whether the chief minister has accepted the demand for a special committee or announced a decision on the restrictions.
The immediate next step sought by the MLA is a project-by-project review under the Urban Development Department, alongside a decision on whether the municipal restrictions will be suspended or modified.
