Construction giant L&T to face probe in Rs 400 crore scam in Mumbai

Engineering and construction giant Larsen & Toubro (L&T) will face probe in Rs 400 crore scam, the Maharashtra government said on Friday. Minister of state for Home, Ranjit Patil said that an inquiry will be conducted into alleged irregularity in the construction of residential buildings by L&T in suburban Powai.

The company is accused of using up land meant for industrial purposes to build residential highrise buildings in violation of rules. The issue was raised by Shiv Sena MLA Sunil Prabhu in the Maharashtra assembly following which the government assured of a probe.

"Larsen and Toubro was given land near Paspoli in Powai area of Mumbai, where the company allegedly constructed ten 24-storey towers, resulting in misappropriation of Rs 400 crore. The company has violated the Urban Land Ceiling Act and Development Control rules," minister Patil told the house.

The company had been granted land by the government for the purpose of setting up a manufacturing unit. Land worth Rs 400 crore, was, however, in violation, used to construct residential units. An attention notice was used to raise the matter before the house.

BJP MLA Ashish Shelar alleged that the company had not taken necessary permissions from the municipal corporation to construct residential units. L&T was also accused of ignoring district collector's order to stop the construction.

With agency inputs