Adarsh Housing Society Scam | Supreme court grants bail to accused in ₹ 9000 crore scam.

Adarsh Housing Society is a residential complex in the Colaba area of Mumbai, India. The Society came into existence in 2003 and was constructed on land originally meant to be used for housing Kargil War heroes and their families.

The Society was originally constructed for the families of soldiers who had died in the 1999 Kargil War. However, the occupants of the complex ended up being bureaucrats and relatives of politicians who were not at all connected with the Kargil war.

Adarsh Housing Society Scam Unearthed

The Adarsh Housing Society has been mired in controversy since it was first revealed that several politicians and bureaucrats had been given flats in the Society, which was meants for war heroes and their families.

The Supreme Court’s stay order will no doubt come as a relief to the society’s residents, who have been living in uncertainty for the past few months. However, it remains to be seen how long the stay will last and whether the army will eventually be able to demolish the society. The issue had been in the news since 2003, but the probe began only in 2010, following which the Army and C.B.I. launched separate probes.  What, at first, appeared as a misuse of granted land turned murkier as the revelations of the probe grew.

It was found that the Navy had objected to the Maharashtra government for permission for Occupation Certificates, citing “serious security concerns” as the 100-meter tall building stood next to a planned helipad and military installations. It was also found that the society didn’t obtain a NOC from the Ministry of Environment and Forests, and above all, the society had permission to build only six floors. When the benami transaction was unearthed, the Enforcement Directorate joined the probe.

Adarsh Housing Society Scam Investigation

The Adarsh Housing Society scam came to light in November 2010 when it was revealed that a luxury apartment block in Mumbai had been built on land meant for war veterans and their families. The scandal resulted in many arrests, including that of the former Chief Minister of Maharashtra, Ashok Chavan.

Ketan Tirodkar, a journalist known for his investigative work, was the one who exposed the Adarsh housing society scam in Mumbai. Tirodar revealed that the Society was permitted to construct a taller building than what was originally planned and that the extra height was sold off to members at a higher price.

It is also alleged that some of the flats in the Aarsh Housing Society were allocated to politicians and bureaucrats, who did not qualify for them as per the Society’s rules. The Society has been under the scanner of the CBI (Central Bureau of Investigation) and the ED ( Enforcement Directorate). The Supreme Court has also taken aware of the matter.

The Adarsh Housing Society is a controversial building, and many believe that the rules were bent in its construction. Moreover, the building symbolises the alleged corruption in the system and the impunity with which the powerful operate.

Law and Order on the Culprits’ 

In 2017, the Bombay High Court overturned the authorisation given to the Central Bureau of Investigation (CBI) by the governor of Maharashtra, Ch Vidyasagar Rao, to prosecute senior Congress leader Ashok Chavan in connection with the Adarsh housing society fraud.

Ashok Chavan was the chief minister from December 2008 till he resigned in November 2010 amid corruption allegations related to the Adarsh Society Scam. The following is the chronological order of the events in the Adarsh housing society fraud case.

CAG’s Role in the Scam

The CAG is India’s top auditing body and is responsible for auditing all government departments and agencies. In 2010, the CAG released a report on the Adarsh housing society, which pointed out several irregularities in the way the society had been set up and operated.

With the CAG intervention, the Adarsh housing society scam would likely have come to light. The CAG’s role in uncovering this scandal is a reminder of the important role that auditing bodies can play in ensuring transparency and accountability in government.

Also Read This: Telgi Scam 2003: From street vendor to mastermind of multi-crore stamp paper scam.

Highlight of Scam

The CBI investigated a corruption case in 2011 that involved 14 people, including the then Chief Minister of Maharashtra. The people were charged with breaking the prevention of corruption Act. The scandal led to the resignation of the Chief Minister of Maharashtra, Ashok Chavan, and the arrest of several high ranking officials.

Officials who were arrested in the Adarsh Housing Society Scam-

  1. Ashok Chavan – Former Chief Minister of Maharashtra.
  2. K. V. amath – Former Chaitrman of the Indian  Bans Association.
  3. Sushil Kumar Shinde – Former Union Minister of Power.
  4. Shivajirao Adhalrao Patil – Member of Parliament.
  5. Kanhaiyalal Gidwani – Promoter of Adarsh Housing Society/Former Congress MLC.
  6. Ramanand Tiwari – State Information Commissioner.
  7. Subhash Lalla – Member of the State Human Rights Commission.
  8. Jairaj Phatak – Former Municipal Commissioner of Mumbai.
  9. Wanchoo – Retd Brigadier.
  10. P. V. Deshmukh – Deputy Secretary of the Urban Development Department.
Year Movement in Case
In 2010
  • In India, the Adarsh Housing Society Scandal was a significant political scandal that surfaced in 2010.
  • The issue included the Adarsh Housing Society’s development of an apartment complex in Mumbai for the families of servicemen who had perished in the 1999 Kargil war.
July 4, 2012
  • The Government filed charges against all the accused
  • They built an apartment without permission, and the court said it had to be knocked down.
  • The people who had done something wrong had to pay for the apartment to be knocked down.
In 2013
  • Maharashtra Governor K Sankaranarayanan did not allow  Chavan to be prosecuted in a case.
  • But a court and the Bombay High Court said Chavan must be prosecuted.
In 2014
  • Chavan produced further arguments for considderation.
  • The CBI had earlier decided not to proceed with the accusations against Chavan, However, the courts were not in agreement with his decision.
  • So the CBI asked the High Court to make he decision instead.
In 2015
  • A sessions court later refused to omit his name as an accused in the case. The court’s order was backed Bombay HC in 2015.
In April 2016
  • The Bombay High Court said that the 31-storey Adarsh building in Mumbai was built illegally and must be demolished.
  • The people who built it will have to face criminal charges. But the Adasrh Housing Society can ask the Supreme Court to stop the demolition for 12 weeks.
In July 2016
  • The Supreme Court stopped the tearing down of Adarsh Housing Society.
  • Instead, they asked the defence forces to take care of it while the court decided if it was built against the law and with help from politicians and government workers.
In 2016 later
  • A new governor, Vidyasagar Rao, allowed the CBI to prosecute Chavan, but Chavan argued against it.
  • The CB said that Chavan was the Chief Minister when he made a bad decision.
  • He allowed 40% of the flats to go to civilians, which was illegal.
On December 22, 2017
  • The Bombay HC ruled against Chavan being prosecuted in the case, overturning the Governor’s decision.

Later, it was discovered that many of the apartments in the complex were given to powerful individuals lie politician and that the organisation had broken various laws to get the construction permitted.

In 2016, the court ordered the building to be demolished, holding that it was illegally constructed. However, the society appealed to the Supreme Court, which in 2018 ordered a stay on the demolition. On the orders of the Supreme Court, the Indian army has secured the building.

The Adarsh Housing Society scandal is a remainder that much work needs to be done if India is to root out corruption from its institutions. But unfortunately, when it comes to housing societies, there are a lot of scams that take place.

Supreme Court Grants Bail to Accused

The court, on hearing that the parties noted that the facts indicate that Rathod has been in custody since August 28, 2019, and the total number of accused involved is 187. The court further noted that it is evident that as regards the balance 27 accused who have not appeared as yet proclamation is to be initiated.

The court further noted that in the absence of the reasonable time line in the absence of the reasonable time line for conclusion of a trial, the court must protect Rathos’s liberty. The court further noted, “We grant bail on the ground since he has been under custody since 2019”.

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