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Realty boom in Nagpur is a big shocker in reality

Many unregistered firms have sold plots without any sanction.

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All is not well in the Nagpur realty world. A complex real estate fraud that is unfolding in the city threatens to hit at least a million investors. Many unregistered firms have sold plots that have no legal sanction from any authority.

Take the case of Yeshwant Vishwanath Mahurkar, 75, a retired director of the Geological Survey of India. He bought a 4,500 sq feet plot at Rs10 per sq feet from a housing society in Khapri in 1991, oblivious to the fact that the area has been acquired for the multi-modal international hub and airport at Nagpur, commonly known as the Mihan project. Now, he does not know whether his land still belongs to him.

The grievances fall in four categories. Housing committees having gone defunct or fled the city; same plot being sold to multiple customers; societies refusing to hand over the registry of the plot to the owners; or no development at all.

Moreover, illegal construction beyond municipal limits is mushrooming even as the authorities feign ignorance.

“Forget open plots, thousands of flat owners are being duped also,” said social and political worker Anil Wadpalliwar. Recently, acting on his PIL, the Nagpur bench of Mumbai high court asked the collector to halt all illegal constructions around Besa-Beltadori Gram Panchayat, near Wardha Road. According to primary inspection, at least 12,000 commercial and residential complexes in just one locality will be facing the axe.

However, according to Wadpalliwar, hundreds of buildings have mushroomed on the outskirts under the nose of revenue authorities and, in some cases, with their complicity in violation of the statutory rules.

On February 1, collector Praveen Darade issued notices to builders, an action that would affect nearly 15,000 flat owners in the illegal apartments. According to a builder, an estimated Rs500 crore worth of projects are underway without any permission.
“Every construction beyond municipal limits requires my permission as per the Mumbai Regional Town Planning Act of 1966,” said Darade.

He has now constituted a team of revenue officials above the rank of additional deputy collector to make a report on the number of buildings that have violated the law.

According to a clerk at the office of deputy director of registrar, at least 10,000 acres have been sold within the city jurisdiction and 75,000 acres outside it. Within the Nagpur Municipal Corporation limits, the land prices are between Rs1,000 and Rs5,000 per sq feet. Beyond the city, the prices hover around Rs250-Rs750 per sq feet and Rs1,000 per sq feet for flats.

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