Published On : Fri, Apr 3rd, 2015

Probe Butibori low-cost housing scam, CM Fadnavis tells Nagpur commissioner

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Nagpur: Maharashtra chief minister Devendra Fadnavis has asked the divisional commissioner of Nagpur to investigate and submit a report on alleged misappropriation of funds and duping of industrial workers in the Butibori low-cost housing scheme which was promoted by Nitin Gadkari. The allegations pertain to corruption and duping of industrial workers where they were over-charged in the Butibori low-cost housing scheme in Butibori industrial area that is located 30kms from Nagpur.

According to the complainant Jammu Anand from Nagpur, union minister for surface transport, shipping and rural development Nitin Gadkari had proposed to Maharashtra Industrial Development Corporation (MIDC) that his housing company Antyoday Gharkul Yojana be leased land to build the Butibori low-cost housing project for industrial workers. The MIDC had turned down the proposal on the grounds that only workers’ co-operative societies can build on their land. According to Anand, Gadkari using his clout in MIDC formed a co-operative society called ‘Indo Rama Workers Co-operative Society’. In an alleged conflict of interest, Gadkari became an advisor to the company and even chief minister Fadnavis was an advisor to the society.

The activist alleges that the fraud and corruption happened in the second phase of the scheme when 270 houses were constructed and during the booking workers were charged more than the market price for a smaller piece of land. “The cost of one square.feet was Rs.570, and on this basis the 425 sq.ft homes should have costed the workers Rs.2,42,250. But a total of 6.25 lakh were collected. The workers were also charged separately for the housing society’s civil works such as pathways and plumbing,” said Anand.

Through RTI, Anand has also found out that the dubious Indo Rama Workers Co-operative Society had not filed their financial statements for five years with the deputy registrar. “All these documents show a clear case of corruption and scandal,” Anand added.


Rajeev Ranjan Kushwaha ( rajeev.nagpurtoday@gmail.com )