MUMBAI: The city’s largest redevelopment project, Motilal Nagar in Goregaon (west), is mired in controversy amid allegations that the National Housing Authority (Mhada) adapted the appeal document from offers to keep most builders out.
Mhada inserted a clause stating that only developers with a net worth of at least Rs 9,000 crore as of March 31, 2021 can qualify. TOI has learned that two major developers, Godrej Properties and Prestige Group, have sent letters of protest to Mhada.
Monday is the last day to submit bids for the Rs 28,000 crore project spread over 143 acres, comprising Motilal Nagar I, II and III. There is already a float in Mumbai’s construction industry as some of the city’s top developers have told TOI that they will not be able to participate due to this clause. State Housing Minister Jitendra Awhad said he had no idea.
“Motilal Nagar’s tender will pave the way for monopoly projects”
The Motilal Nagar redevelopment project in Goregaon is mired in controversy amid allegations that Mhada adapted the tender document to keep most builders out.
A prominent Mumbai-based developer, unwilling to be identified, said: “The terms of the tender are designed to exclude all developers in Mumbai and appear to favor a company that has no previous experience in the matter. redevelopment. It’s nothing but cronyism at its best.
Asked about the controversial clause, State Housing Minister Jitendra Awhad, who recently announced the redevelopment project, said: “I have no idea. Check Monday.
Mhada vice president Anil Diggikar did not respond to calls and messages from TOI.
Pirojsha Godrej, executive chairman of Godrej Properties, said he was unwilling to comment. However, TOI has a copy of the complaint letter that Godrej Properties sent to Mhada last week.
“The financial capacity of the tender, in which the qualifying parameter for the construction and development agency is to have a net worth of Rs. 9000 crore, is not only discriminatory but will prevent various potential bidders , including us, to participate in the offer. It will also be an unfair advantage for a handful of entities that may not even have the requisite field experience to provide housing, accommodation or rehabilitation, ”said the letter from Godrej Properties.
He further said, “The tender in its current form will pave the way for monopoly efforts, which is also contrary to India’s public policy. It is a legitimate expectation of a government enterprise to provide a level playing field during the tendering process, which ensures healthy competition among bidders to achieve results in the best interests of the large. public. And in this case to provide housing for the inhabitants / tenants of the slums for whom it is a question of survival. He called on Mhada to “reasonably reduce / relax the standards to allow more bidders to participate, which will lead to better prospects for existing residents and MHADA”.
The Prestige group, based in Bangalore, also complained to the housing authority. The letter signed by Prestige Estates Projects CEO Venkat Narayana said: “… the financial capability criteria as contained in the tender require that a single entity have a net worth of at least 9,000 Rupee crore as of March 31, 2021. We submit that these criteria are not only onerous, but also unsuitable for the size of the project. Although we are one of the largest real estate developers in the country, we are unable to meet the equity criteria, which is far beyond what is required to undertake a project of this scale.We kindly ask you to reconsider the equity criteria based on the size of the project and that will ensure a effective competition. ”
Mhada’s tender was launched under the public-private partnership model to rehabilitate approximately 3,717 Mhada tenants and 1,600 slum dwellers.
Motilal Nagar was built in the 1960s as a settlement for the rehabilitation and resettlement of residents who were displaced from different locations in the city and suburbs. Prime Minister Jawaharlal Nehru laid the foundation stone for this resettlement colony.

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