Pune: Legal Delays Lead to Cancellation of Ravet Housing Project under Pradhan Mantri Awas Yojana

Pimpri Chinchwad, 20th December 2024: The 934-unit housing project under the Pradhan Mantri Awas Yojana (PMAY), planned by the Pimpri-Chinchwad Municipal Corporation (PCMC) in Ravet, has been officially canceled due to delays in the legal process. In light of this setback, the PCMC has requested the Maharashtra Housing and Area Development Authority (MHADA) to include this project in the second phase of PMAY. This shift in plans will lead to a significant price increase for the flats, raising concerns about the impact on the 934 identified beneficiaries.
The project, initially set for construction on a two-hectare plot in Ravet, was greenlit on May 30, 2019, with a total project cost of Rs 88.25 crore. Infra Construction was awarded the contract, with a construction timeline of two and a half years. However, after foundation work began on two of the six buildings, a resident of Ravet filed a petition in the Mumbai High Court against the project, disputing the land acquisition process by the District Collector’s office. In October 2020, the High Court issued a stay on the construction, halting work for over four years.
The legal battle, which involved both the High Court and the Supreme Court, was finally resolved in October 2024, with both courts dismissing the petition and clearing the way for construction to resume. Despite this, the prolonged delay meant that the project could not be completed within the original deadline of December 2024. Additionally, rising construction material costs have further hindered progress, leading to the cancellation of the original housing plan.
As a result, the Municipal Corporation has written to MHADA, requesting the inclusion of the stalled project in the second phase of PMAY. However, this reallocation means that the prices of the flats will more than double, leaving the original beneficiaries with a financial burden.
The delay in completing the Ravet housing project also raises the possibility that the central and state government grants provided for the project may need to be returned. The Municipal Corporation will have to reapply for approval and submit a new Detailed Project Report (DPR). Furthermore, new consultants and contractors will need to be appointed, further increasing the cost of the project and the price of the flats.
The lottery for the flats was conducted on February 27, 2021, with Rs 5,000 collected from the 934 beneficiaries who had been identified. However, due to the prolonged legal process and subsequent project cancellation, concerns have emerged over what will happen to these beneficiaries, especially given the significant price increase.
In response to these concerns, Additional Commissioner Chandrakant Indalkar assured that the Municipal Corporation would not abandon the identified beneficiaries. The corporation is exploring options to offer flats in a similar project for economically weaker section (EWS) citizens being developed in Kiwale.