Former MLA Baba Siddique (File photo)

NEW DELHI: The Enforcement Directorate (ED) on Wedenesday conducted raids at the premises of Maharashtra Congress leader Baba Siddique , Rafique Maqbul Qureshi and others in connection to their alleged role in the Mumbai slum rehabilitation scam.

Siddique, a former Bandra MLA, and his associates were named in an FIR filed by the Mumbai police to investigate a Rs 108 crore money laundering case involving a slum rehab project in suburban Bandra.

ED officials said the raids are being conducted on at least half a dozen locations in the Maharashtra capital, including that of a builder. A criminal case has been registered against Siddique and others under the Prevention of Money Laundering Act ( PMLA ) based on the local police FIR.

Mu mbai's slum rehab scheme, introduced by the Shiv Sena-BJP government in 1996, has a notorious reputation with widespread complaints of slu mlords, local goons, underworld elements and politicians seeking a slice of the lucrative projects.

Industry sources said that several of the builders whose permissions were terminated are not really builders. "They are local agents or people fronting for politicians who managed to corner a slum project by obtaining the mandatory 70 per cent consent from slum residents. Any builder who manages this gets the rights to redevelop the slum pocket," a source pointed out.

In many cases, these agents or small-time operators have no intention of starting work, but wait for an opportune time to sell the development rights to a bigger builder and make a killing. A slum redeveloper said the profit could amount to as much as Rs 2,500 per sq ft of sale FSI. The builder has to pay the agent, who then vacates the plot.

However, sources said there are at least 100 such slum rehab projects, which are stuck. "A prominent politician from the eastern suburbs is selectively targeting some builders," alleged those involved in slum redevelopment.

(With inputs from agencies)



In Video: ED raids Cong leader in Mumbai slum rehabilitation scam