Hutment Sale Scam Returns to Haunt HDIL: EOW Uncovers ₹150 Crore Housing Fraud Involving 1,000 Slum Rehabilitation Units

Mumbai, March 7, 2026: Mumbai Police's Economic Offences Wing has unearthed an alleged housing scam to the tune of ₹150 crore where home possession documents earmarked for at least 1,000 slum rehabilitation residents were sold off to third-party buyers. The firm at the centre of the alleged racket that stretches well over a decade is the Housing Development and Infrastructure Ltd Group, with the EOW probe hinting at the involvement of HDIL's top bosses .

Former Staffer's Statement

A key statement in the case was made by Chandrashekhar Dinappa Gowda (46), a former HDIL staffer who worked as an Officer on Special Duty at the company's Bandra office. According to his statement, HDIL had undertaken redevelopment of around 3,000 slum structures across nine societies in Bharat Nagar. Of these, nearly 2,000 huts were vacated during the project. The company allegedly purchased document files of around 1,500 shanties from occupants — including those who were eligible, ineligible, or whose names did not appear in official annexures .

Gowda told investigators that these files were stored in the company's accounts department and that from around 2011, they began to be sold for ₹15-16 lakh each and that the money collected from buyers was handed over to HDIL chairman Rakesh Wadhawan. In some instances, buyers allegedly brought blank cheques with only the amount filled in, which were then passed on to senior company officials .

Transit Camp Irregularities

According to investigators, HDIL had constructed 30 buildings in 2009 at the Kurla Premier compound specifically meant for the rehabilitation of slum residents displaced by airport construction work. Officials said the company had taken 1,336 transit flats in buildings 5 and 6 on lease from the Slum Rehabilitation Authority for three years to temporarily house project-affected residents from Bharat Nagar .

Buyers were subsequently issued possession letters permitting them to stay in transit accommodation meant for the original residents. These occupants were issued possession letters, though the document reportedly carried a note stating that permanent rehabilitation would be granted only subject to eligibility confirmation .

Individuals purchasing the files would approach him with the documents, Gowda said, following which he would verify the sale with the accounts department before issuing an HDIL possession letter for rooms in buildings 5 and 6 of the Kurla Premier transit camp – among the most prime real estate parcels in Mumbai .

Gowda told investigators that around 1,200 residents were shifted to the transit camp. However, a probe later revealed that many original beneficiaries were untraceable, and several units were allegedly occupied by unauthorised persons who had purchased hutment document files from the Wadhwans .

Additional Financial Irregularities

Additionally, it was discovered that HDIL had allegedly defaulted on rental payments between August 2014 and March 2016, leading to dues of nearly ₹44 crore. The MMRDA had earlier sought eviction of illegal occupants and recovery of over ₹35 crore in rental arrears with GST .

Previous Cases Against HDIL

The company has been embroiled in multiple controversies. In the Patra Chawl redevelopment project at Goregaon, the ED had attached properties worth ₹31.50 crore of the Wadhawan brothers in 2023 for alleged money laundering involving proceeds of crime of approximately ₹1,039.79 crore . In that case, HDIL's sister concern Guru Ashish Construction Pvt Ltd was entrusted with redeveloping the 47-acre property but allegedly sold FSI to nine developers without constructing rehabilitation portions .

In January 2024, two fresh FIRs were registered against HDIL promoter Rakesh Wadhawan for allegedly forging signatures of hutment owners to acquire redevelopment rights in Bharat Nagar .

Legal Proceedings

Following mounting complaints, a case was registered on March 4, 2025, at Vinoba Bhave Nagar police station under sections related to cheating, criminal breach of trust, forgery and criminal conspiracy. The probe was later transferred to the Mumbai EOW, which examined project documents, financial records and statements of more than 60 witnesses before filing the chargesheet .

The EOW filed its chargesheet in the court on Thursday naming HDIL promoters – the Wadhwans – and their associates, even as it awaits the response of the Slum Rehabilitation Authority to pursue leads in the investigation .

Denials and Investigation Status

However, former HDIL managing director Sarang Wadhawan and former chairman Rakesh Wadhawan denied the allegations in their statements to investigators. They stated that while the company had purchased document files of huts belonging to Bharat Nagar residents for redevelopment purposes, they had no direct role in the alleged sale of such files to third parties. According to them, the project was handled by designated officials, and they were not involved in day-to-day transactions .

Harshad Nimbalkar, lawyer for Rakesh Wadhwan and Sarang Wadhwan, denied all the allegations. He said, "Accusations regarding the sale of 1,000 shanties have been made. Let the police present the evidence before the court. We will firmly put forward our side there as well" .

Investigators are also scrutinising financial records and company transactions, noting that HDIL later faced financial distress, with insolvency proceedings initiated before the National Company Law Tribunal .