The document summarizes the Adarsh Housing Society scam that occurred in Mumbai, India. It describes how the society illegally obtained land meant for Kargil war veterans and instead allocated apartments to politicians and bureaucrats. An investigation revealed numerous violations, including constructing a taller building than permitted and lacking proper environmental clearances. Several high-ranking officials were arrested or resigned as a result of the two-year judicial inquiry into the major corruption scandal.
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Presentation in respect of IRS Towers, the Housing Project of IRS (Mumbai) Housing Cooperative Society made by the Developer Integrated Spaces Ltd. in the GBM on 27-02-09
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3. INTRODUCTIONINTRODUCTION
• In 2010, the Indian media bought
to public the alleged violations of
rules at various phases of
construction in the Adarsh
society.
• Questions were raised in the
manner in which, building
apartments were allocated to
bureaucrats, politicians and army
personnel's who had nothing to
do with the kargil war.
4. INTRODUCTION (CONTD..)INTRODUCTION (CONTD..)
• The Adarsh Housing Society is was
cooperative society in Mumbai, India.
The origins of the scam go back to
February 2002 when a request was made
to the Chief Minister of Maharashtra to
allot land in the heart of Mumbai for the
construction of a housing complex for "the
welfare of serving and retired personnel of
the Defence Services".
6. ABOUT ADARSH SOCIETYABOUT ADARSH SOCIETY
SCAMSCAM
• The Central Bureau of Investigation (CBI), the Income Tax
Department(IT) and the Enforcement Directorate (ED) were in
the process of investigating allegations that three former chief
ministers, Sushilkumar Shinde, Vilasrao Deshmukh and
Ashok Chavan of the state of Maharashtra were also involved
in the scam.
• "The episode of Adarsh Co-operative Housing Society reveals
how a group of select officials, placed in key posts, could
subvert rules and regulations in order to grab prime
government land- a public property- for personal benefit.”
7. ALLEGED VOILATIONSALLEGED VOILATIONS
• The Adarsh society was
constructed in the Colaba
locality of Mumbai, which
is considered a sensitive
coastal area by the Indian
Defence forces and
houses various Indian
Defense establishments.
• The society is also
alleged to have violated
The Indian environment
ministry rules.
8. ILLEGAL PRACTISESILLEGAL PRACTISES
• Rules and regulations across many departments and
ministries, both at the Centre and the state of
Maharashtra, were bent to allow for the construction of
this edifice.
• Some of the transgressions included obtaining a No
Objection Certificate (NOC) from the Army towards
1. Construction of the building in a sensitive zone,
2. Getting the MMRDA development plan modified and
3. Obtaining another NOC for residential development in
Coastal Regulation Zone,
Often through manipulation of records and
misrepresentation of facts.
9. INQUIRY BY JUDIACIALINQUIRY BY JUDIACIAL
COMMISSIONERCOMMISSIONER
• On 9 January 2011, Govt. of Maharashtra
appointed a two member judicial commission,
under the Commissions of Inquiry Act, 1952,to
investigate alleged irregularities and corruption.
• It was decided that the commission would be led
by a retired Bombay High Court judge J.A. Patil
while former State Chief Secretary
P Subramanian would be the member.
10. TERMS OF THE COMMISSIONTERMS OF THE COMMISSION
• The Commission's terms of reference were to
investigate all aspects, including land
ownership, allotment and permissions given to
Adarsh society.
• The Commission was given three months' time
to complete the investigation.
• On 27 June 2012, while deposing before the two
member panel probing the scam,Vilasrao
Deshmukh contended that land was allotted to
the housing society after getting clearance from
the Revenue Department, passing the buck to
his successor, Ashok Chavan who headed the
department then.
11. RESULTSRESULTS
• It had led to the resignation of the then
Chief Minister, Ashok Chavan.Ashok Chavan.
• Some allottees of the flats in the Adarsh
co-operative society building have offered
to return their flats, denying allegations
that they were allotted flats because they
influenced or helped, in some manner, the
construction of the society by violating the
rules.
13. STAGE OF INVESTIGATIONSTAGE OF INVESTIGATION
• Based on the slow pace of the
investigation, Bombay High Court severely
castigated Enforcement Directorate for its
failure to initiate any probe in the matter on
28 February 2012.
• Several inquiries have been ordered by the
army and the Government to probe into the
irregularities
• The High Court, On 12 March 2012,
severely castigated the CBI for not
arresting any of the accused in spite of
having evidence and ordered it to take
action without fear or favour.
• ED having registered a case under
Prevention of Money Laundering Act,
has decided to launch attachment
proceedings of the flats after going through
the latest chargesheet filed by CBI.
14. ARRESTSARRESTS
The CBI carried out eight arrests
Two retired Major Generals TK Kaul
and AR Kumar
Retired brigadier MM Wanchoo
former General Officer
Commanding (GOC) of
MaharashtraGujarat and Goa
Adarsh promoter Kanhaiyalal
Gidwani
Two IAS officers Pradeep Vyas and
Jairaj Phatak have been
suspended.
The CBI officers arrested their own
lawyers, J K Jagiasi and Mandar
Goswami.
He was the Special Counsel in the
Ministry of Law and Justice and at
present is working as Retainer
Counsel for CBI.
15. ARRESTS (CONTD..)ARRESTS (CONTD..)
According to newspaper reports, many of the arrested
hold more than one flat in the society in fictitious names.
Former Congress MLC Kanhaiyalal Gidwani was
reported to have as many as ten flats, which he had
bought on behalf of top politicians.
Gidwani and his son had been earlier arrested on 6
March 2012, by the CBI for trying to influence CBI
officials investigating their alleged involvement in the
Adarsh scam.
Jagiasi allegedly asked an Air India (AI) official, one of
the accused in the case, to pay a bribe of Rs 5 million in
exchange for diluting charges levelled against him.
16. BAILBAIL
• On 29 May 2012, a special CBI
court granted bail to seven of
the nine arrested accused in
the Adarsh scam since the CBI
failed to file a chargesheet
within the stipulated 60 days
from the time it took them in
custody.
• The bail was set at 500,000
(US$8,600).
• They were directed to attend
the CBI office every Tuesday
and Thursday between 10 am
and 12 pm. The court also told
the accused to deposit their
passports and not tamper with
evidence.
17. 2-YEAR JUDICIAL PROBE IN2-YEAR JUDICIAL PROBE IN
ADARSH SCAM ENDSADARSH SCAM ENDS
By PTI - MUMBAI 16th January 2013 06:39 PM
• The two-year marathon inquiry conducted by a judicial
commission into the Adarsh scam has ended with the
Maharashtra government said to have admitted for the
first time that the controversial housing society did not
have necessary environmental clearances.
• Ashok Chavan is an accused in the case but was
never arrested.
18. ARTICLE (CONTD..)ARTICLE (CONTD..)
• The state government in its final arguments is said to
have noted that the society should not have
constructed 31 floors as the Development Control
Regulations (DCR), 1967, applicable to it, did not permit
that. According to the state, the building situated in south
Mumbai's upscale Colaba, could have been built only up
to 46.5 m and not the present 100.7 m.
• A total of 214 witnesses were examined by the
commission including then the Union Home Minister
Sushilkumar Shinde, former Maharashtra chief ministers
Vilasrao Deshmukh and Ashok Chavan, former army
chiefs N C Vij and Deepak Kapoor, several IAS officers
and bureaucrats from the state and central government.