Mumbai’s Residents and the Shadow of Managing Committee–Builder Nexus in Redevelopment Deals.

Sweating It Out: Mumbai’s Residents and the Shadow of Managing Committee–Builder Nexus in Redevelopment Deals

The redevelopment boom across Mumbai is transforming old housing societies into gleaming new high-rises, but not without stirring deep fears among residents. The darker side of this process emerges most commonly as a suspected nexus between managing committee (MC) members and builders, often leaving ordinary flat owners at risk of being shortchanged or sidelined entirely.

The Growing Unease in Mumbai Societies

Recent incidents reveal the extent of residents’ anxieties. In one Khar society, members were stunned to find committee representatives enjoying an all-expenses-paid holiday in Bangkok—a generous “gift” from a builder. In another, a society chairman’s son reportedly landed crores worth of contracts, and the daughter found herself appointed to a prestigious post, all thanks to the builder’s favor. Other stories include MC members receiving lucrative printing contracts or favorable flat allocations, all raising questions of conflict of interest.

“A developer said his experience is that 25% of MCs are genuine, while the remaining 75% have vested interests. Some MC members want more area; others demand money on the side,” notes the Times of India article.

Project Management Consultants: Corruption or Oversight?

A supposedly neutral voice in redevelopment, Project Management Consultants (PMCs), are frequently accused of being “glorified brokers” who extract significant kickbacks for steering contracts to preferred developers. Reports suggest that in prime Mumbai localities, syndicates comprising MCs and PMCs may rig tenders, allegedly earning kickbacks between 5–10 crore for a single project.

How the ‘Nexus’ Can Harm Residents

Manipulated Feasibility Reports: Some builders, with MC collusion, inflate or skew the financial viability numbers, painting a false picture to manipulate member decision-making.
Selective Allotment: Members close to the committee may enjoy perks—such as larger flats or better locations—while common owners get lesser benefits or are manipulated into supporting subpar deals.
Lack of Transparency: Negotiations and documentation often happen behind closed doors, and ordinary members are kept out of the loop.
Legal and Financial Risks: Dishonest MCs may leave loopholes in agreements, exposing residents to unwanted tax or dispute liabilities.

The Broader Pattern and Legal Risks

Cases of illegal construction, occupation without proper certificates, and bypassing safety and legal norms have arisen when MCs turn a blind eye or actively collude with developers. In Chembur, an entire society was left without an occupation certificate after the builder, in cahoots with the MC, bypassed mandatory aviation clearances and flouted redevelopment laws.

The consequences are dire: years without proper documentation, plunging property values, and protracted court battles. Many residents, especially those not well-connected with the MC, find themselves sidelined, unable to voice their concerns, or, worse, threatened into silence.

Is There a Positive Side?

Not all MCs are malefactors. Some genuinely protect society interests, negotiate firmly, and execute transparent processes. But the recurring theme is that unchecked power and lack of resident vigilance open the doors to malpractice.

What Can Mumbai Residents Do?

Demand Transparency: All redevelopment negotiations and documentation must be shared openly, and MC decisions should be minuted and available on record.
Insist on Regular Updates: Frequent meetings and written updates help keep both MCs and builders accountable.
Use Legal Safeguards: Engage independent legal counsel to scrutinize redevelopment contracts, feasibility reports, and builder commitments.
Champion Self-Redevelopment: Experts tout self-redevelopment as a way to bypass builder and MC collusion, giving residents more control over their collective future.
Stay Vigilant and United: Societies should foster collective decision-making, empower minority voices, and remain alert for signs of favoritism or financial impropriety.
Mumbai’s redevelopment story is one of both transformation and turbulence. For residents, the message is clear: stay informed, stay united, and hold managing committees to the highest standards of transparency and integrity. Otherwise, the price of progress could be paid in trust, security, and peace of mind.