Navi Mumbai: The Urban Development Department has approved a contentious decision to allow CIDCO to proceed with the sale of houses through the same consultancy agency that was previously appointed for branding, marketing, and selling 67,000 houses under the Pradhan Mantri Awas Yojana (PMAY). This agency, contracted two years ago for Rs.700 crores, has been under scrutiny for not having sold a single house during its tenure, despite receiving Rs.128 crores in mobilization costs.

The directive was communicated to CIDCO's managing director on Friday, indicating that the decision regarding the upcoming CIDCO housing lotteries will be managed by this agency. The Urban Development Department has advised that CIDCO’s Board of Directors must approve any decisions related to the sale of remaining houses based on the performance of the agency, as stipulated in their initial agreement.

The decision has sparked significant concern among various stakeholders, including social activists and information officers, who question the qualifications of the agency. Allegations have surfaced that the agency was favoured due to political pressure, raising questions about the integrity of the selection process.

Many local activists and CIDCO officials have expressed their opposition to the continuation of this contract, highlighting that the agency has not fulfilled its obligations over the past two years. There are also claims of an illegal bailout, with CIDCO allegedly compensating the agency for mobilization costs without any houses sold.

In previous discussions, multiple suggestions were made regarding the appointment of this consultancy agency, but the Urban Development Department has only sought additional information from CIDCO without making any decisive moves over the past year and a half. Notably, during the Maha Vikas Aghadi Government, then-Deputy Chief Minister Ajit Pawar sought detailed reports on the tender after receiving complaints about the agency's appointment.

Reports from CIDCO submitted to the Urban Development Department on August 11, 2023, and February 22, 2024, have been criticized for allegedly providing misleading information regarding the agency's qualifications. RTI activists claim that this has hindered CIDCO's ability to sell the houses effectively.

The writer is a freelancer