Who pocketed the loot of the Goregaon Patra Chawl scam?

For the past 25 years, the BMC has remained under the dominance of a single political family. During such a long rule, many decisions and projects came up—but some schemes became symbols not of development, but of scams. Among them, the biggest and most notorious name is the Patra Chawl scam of Goregaon, Mumbai. This is not just a matter of money; it is a direct robbery of the rights of the poor. And the name linked to this scam is that of Matoshree’s “right hand” and outspoken leader, Sanjay Raut. Beginning of Patra Chawl: a dream of homes for the poor During the Second World War, temporary barracks for the British army were built on nearly 50 acres of land in Goregaon. After the war, 627 poor families settled there in 101 tin-roofed chawls (Patra Chawls). To provide them permanent homes, a redevelopment proposal was introduced. During the tenure of then Chief Minister Manohar Joshi, a plan was made to construct 808 houses. First shock: faulty redevelopment The project was initially awarded to the Lokhandwala builder. The agreement was for 375 sq ft homes, but only 322 sq ft units were built. Protests erupted, and the builder was removed. MHADA’s entry and ‘Guru Ashish Construction’ In 2007, Chief Minister Vilasrao Deshmukh decided to complete the project through MHADA. The contract was awarded to Guru Ashish Construction, owned by Pravin Raut. The conditions were clear: 672 houses free for tenants Remaining land to be used to sell 3,000 flats But reality turned out to be the opposite. HDIL enters—and the game changes Citing inability to continue the work, Guru Ashish stepped back. Then HDIL (Rakesh Wadhawan’s company) entered the project and made Guru Ashish its subsidiary. In 2010, Pravin Raut sold 258% of the company’s shares to HDIL. From this point onward, it is alleged that the interests of the poor were sidelined. Sale of FSI: a ₹1,034 crore game Investigations revealed that the FSI meant for housing the poor was sold to eight private builders for ₹1,034 crore. Tenants did not receive homes The land was commercially exploited Money circulated through private accounts And all this allegedly happened with the blessings of the same family holding power in the BMC. Pravin–Sanjay Raut connection Pravin Raut is said to be a close associate and family friend of Sanjay Raut. The ED investigation revealed: In 2010, ₹95 crore was deposited into Pravin Raut’s accounts Pravin Raut’s wife Madhuri Raut gave an interest-free loan of ₹55 lakh to Varsha Raut, Sanjay Raut’s wife This money was used to buy a luxury flat in Dadar and land in Alibaug The ED recorded statements from those involved and linked these transactions to the scam proceeds. ED action Dadar flat and Alibaug land were attached Multiple summons issued in 2022 Layers of the scam continued to emerge during the investigation What does the Patra Chawl scam teach us? This is not just financial misconduct— The poor were cheated in the name of redevelopment Government land was misused for private gain Those close to power received protection The final question remains: Was 25 years of one-family rule over the BMC about public service—or about capturing the public treasury? If schemes meant for the poor end up filling the coffers of a few, this is not democracy—it is plunder. And that is why Mumbaikars today are clearly saying: the BMC is not the private estate of any one family. BMC is not a family business #notafamilybusiness