Excerpts from the CAG Report : "These officials in fact were those entrusted with the fiduciary responsibility of protection of Defence land. They betrayed the trust reposed in them for the personal benefit of a number of favoured individuals- all of whom are highly placed. As events would turn out, there was no place for any girls’ hostel or for that matter any other facility for welfare of servicemen."
It would be only reasonable to conclude that though references to ‘widows’ and ‘Kargil Heroes’ was being repeatedly made, such could never have been the intention as these individuals would not have the financial capability to meet the cost of apartments in this structure.
As would be seen from the lists of members, while on the one hand, the membership kept expanding, on the other hand even junior service and civilian officers went out of the Society and many senior service officers and public servants became members. Notable among the service officers who became members of the Society at a later date were two former Chiefs of Army Staff, General NC Vij and General Deepak Kapoor. Both of them were allowed to be members of the Society as “one time special case” (Annexure III) keeping in view their noteworthy service in Indian Army and their social status.
Thus in the name of welfare of servicemen and ex-servicemen, it was the select elite belonging to Services and civilian administration, politicians and individuals connected with them who benefitted from misappropriation of the public property.
As subsequent paragraphs would reveal, Government of Maharashtra and Ministry of Environment and Forests actively further aided and abetted by relaxing regulations and turning a blind eye to the construction of a 31 storey building in the heart of Mumbai, not far from Mantralaya.
During audit, it was noticed that on past occasions the Government of Maharashtra had decided
against allotment of the land for genuine welfare of ex-servicemen on the ground that the land was earmarked for widening of the very same road. Thus the Development Plan of the area was amended and the area reserved for roads was converted into residential area to facilitate the housing project by the Society.
“The Ministry of Environment and Forests have communicated their no objection to allow the said residential development since it falls within the Coastal Regulation Zone II."