Mumbai, March 19 -- The Maharashtra government on Wednesday announced an inquiry into alleged irregularities worth Rs.850 crore in a land tender process linked to a project-affected persons (PAPs) housing project in Malad that allegedly caused losses worth over Rs.600 crore to the Brihanmumbai Municipal Corporation (BMC). Minister of state for urban development Madhuri Misal told the state assembly that the inquiry will be conducted by an additional chief secretary. The matter was raised through a calling attention notice by MLAs Aslam Shaikh (Congress), Yogesh Sagar and Murji Patel (both from BJP). They alleged that a leading developer was granted Transferable Development Rights (TDR) and a premium far in excess of what was due. The MLAs demanded an investigation into the matter by a committee headed by a retired judge and action against senior BMC officials, claiming that they deliberately acted to serve the interests of the builder. According to the MLAs, the builder received Rs.850 crore along with TDR to construct 13,347 tenements for PAPs in Malad on a 80,934 sqm plot originally reserved for police housing in Mumbai's Development Plan (DP) 2034. The PAP tenements were constructed by the Slum Redevelopment Authority (SRA) for Rs.15 lakh, but the builder in question increased the cost to Rs.50.98 lakh in April last year, putting an additional burden of Rs.618 crore on the civic body, the MLAs said. In its response, the state government said the tenement price was increased to Rs.50.98 lakh from Rs.32.21 lakh in June 2025 after the developer-identified as Valor Estate Ltd-requested a revision, stating that the land valuation had been incorrectly based on a nearby special development zone. The rate was later revised based on that of an adjacent plot, the government said. Misal said the developer had received payments, a credit note and TDR, as per the agreement. "Despite this, no plan was submitted by the developer for the construction of [housing for] the PAPs. There is no reason to make payment without having the plan in place. It is a serious flaw on the part of the BMC. I have already ordered the BMC to submit a report on the utilisation of the credit note." Valor Estate Ltd rejected the allegations as "baseless" and said the project complies with all regulations. It said the Malad plot lies about 10 km from the coastline and is outside the Coastal Regulation Zone, with all required clearances in place. The firm said plans have been submitted to the BMC and are awaiting approval. It maintained there were no cost irregularities, adding that it welcomed an independent inquiry....