Misallocation of PMAY Funds Unveiled in Maharashtra

Maharashtra minister Shambhuraj Desai admitted that funds were misallocated under the Pradhan Mantri Awas Yojana, with over Rs 50 crore dispersed to housing projects that didn't proceed. Some builders received funds but either returned them or promised adjustments. A report by MHADA is under review for further action.

Maharashtra Minister Shambhuraj Desai conceded in the legislative council that substantial funds, exceeding Rs 50 crore, were misallocated under the Pradhan Mantri Awas Yojana (PMAY) for projects that never progressed. These projects were subsequently deemed ineligible for additional funding.

In a session responding to Shiv Sena (UBT) legislator Sachin Ahir, Desai disclosed that public-private partnership housing projects received funds before construction initiation. While some builders returned the funds, others committed to accommodating beneficiaries in other ongoing projects. The funds dispersal came from both central and state government contributions.

A detailed report by the Maharashtra Housing and Area Development Authority (MHADA) is currently under the scrutiny of the Housing Additional Chief Secretary. Desai assured the legislative body that once assessments are finalized, appropriate actions against responsible parties will be undertaken.

(With inputs from agencies.)