More than 80 redevelopment projects in the Vasai-Virar City Municipal Corporation area have been halted over alleged irregularities in additional floor space index approvals, prompting BJP MLA Rajan Naik to seek immediate relief from Maharashtra Chief Minister Devendra Fadnavis.
According to a report by Loksatta – Vasai-Virar, Naik met Fadnavis at Mantralaya on Tuesday and asked the state government to suspend the restrictions imposed on the projects. The restrictions include stopping construction linked to the additional built-up area and directing that occupancy certificates and property registrations for homes and shops in the affected projects should not be processed.
The projects were approved by the municipal corporation between 2020 and 2025. A subsequent review by the civic body reportedly found that additional FSI had been approved in violation of applicable rules. Following the review, the municipal town-planning department halted the additional construction in all the projects and wrote to district registrars asking them not to register documents related to the properties.
The action has placed redevelopment schemes involving original residents, new homebuyers and lenders under uncertainty. The report said original residents vacated their homes after relying on municipal approvals, sanctioned plans and commencement certificates. Buyers also invested in the projects based on those approvals and registrations with the state’s MahaRERA system. Nationalised and cooperative banks have also provided loans to many of the projects, according to the report.
Naik said the decision could put more than Rs 1,000 crore belonging to residents, investors and banks at financial risk. He argued that ordinary citizens should not bear the consequences of administrative and technical errors. The financial estimate and the alleged irregularities cited in the report have not been independently verified in the supplied material.
The dispute highlights the administrative risk created when redevelopment projects proceed through multiple approval stages and are later subjected to a municipal review. Residents may face uncertainty over possession, occupancy certification and property registration, while developers and lenders could be affected by construction stoppages and restrictions on transactions.
Naik has asked the chief minister to establish a special committee under senior Urban Development Department officials to review each project separately. He has also sought an opportunity to regularise technical discrepancies through premium payments or the adjustment of transferable development rights, where permitted, while taking separate action against officials, architects and developers responsible for any rule violations.
The report does not include a response from the Vasai-Virar civic administration, the district registrar, the developers, MahaRERA or the state government on the restrictions or the proposed review committee. The immediate next step sought by the MLA is a project-by-project assessment and a decision on whether the restrictions can be relaxed or the affected approvals regularised.
