CM orders probe into Cidco’s U-turn over ₹900-cr hsg project

MUMBAI: Deputy chief minister Eknath Shinde may have spoken too soon, when he declared that everything was “thanda, thanda, cool, cool” between him and chief minister Devendra Fadnavis, on Tuesday. Shinde’s attempt to quash rumours of a cold war between them fell flat, as it has now come to light that Fadnavis had ordered an inquiry and sought a report from the City and Industrial Development Corporation (CIDCO) earlier this month about a potential housing project in central Maharashtra green-lit by Shinde during his term as CM and head of urban development department.

The housing project in Jalna, worth around ₹900 crore, which was scrapped in 2020 when it was proven unfeasible, was revived in February 2023 when Shinde was at the helm of affairs.

Since the formation of the Mahayuti 2.0 government, Fadnavis and Shinde have locked horns over various issues (see box). This is the latest jolt to Shinde.

CIDCO, which comes under the jurisdiction of urban development department, had planned a mega housing project on 301 acres of land at Kharpudi village, Jalna district, in 2019. M/s Ernst & Young was appointed as a consultant to prepare the project’s techno-economic feasibility. In its report, it cited issues like water scarcity in Jalna, a similar project planned near Samruddhi Expressway and low purchasing capacity of people in the region, to conclude that the project would not be feasible. The report was submitted to CIDCO and discussed in its board meeting in January 2020.

The minutes of CIDCO’s board meeting, which HT has seen, stated identifying “limiting factors both from the project perspective and CIDCO as special planning authority, which would not be in CIDCO’s interest as the project in Jalna was unviable”. CIDO then requested the government “for denotification of the existing Jalna notified area”.

Subsequently, CIDCO scrapped the project and in July 2020 state government de-notified the housing project. However, in February 2023, it was resurrected when the state government issued notification for the project and the process of land acquisition started.

Former MLA from Shiv Sena (UBT) from Badnapur, Jalna district, Santosh Sambare, brought this to Fadnavis’s notice earlier this month. Sambare complained to the CM about “CIDCO’s U-turn on the project in 2023” and alleged it was revived after manipulating the reports which were prepared by another private firm.

Demanding an inquiry, Sambare sent a letter to the CM (of which HT has a copy), which read: “Land mafias are hand in glove with officers while a private consultant manipulated the second report and imposed this unviable project on CIDCO, robbing it of ₹900 crore. When we checked the list of land owners we found most were well-known businessmen. It clearly shows that a cartel had purchased the land from farmers at low prices and was now selling to CIDCO to make profit. I urge you to order an inquiry.”

Fadnavis responded to the complaint and ordered an inquiry. On February 7, the Chief Minister’s Office (CMO) sent a letter to the managing director of CIDCO ordering him to start a probe and submit a report. HT has a copy of the letter. Leader of Opposition in the legislative council Ambadas Danve also raised the matter with Fadnavis; in a letter dated February 18 Danve demanded that the project be scrapped.