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Chennai’s Pallikaranai Alleged Rs 2000 Crore Housing Scam

Oct 24 2025

Chennai’s Pallikaranai  Alleged Rs 2000 Crore Housing Scam

 

An anti-corruption NGO has accused several state government departments of illegally granting approvals for a ?2,000-crore housing project allegedly planned within the ecologically sensitive wetland in a suburban area. In a complaint submitted to the Chief Minister, Chief Secretary, and the Directorate of Vigilance and Anti-Corruption (DVAC), the NGO alleged that the State Environment Impact Assessment Authority (SEIAA) and the metropolitan development authority had issued environmental clearance and construction approval for specific survey numbers, which the NGO claims fall within the wetland area. The organisation said it has attached a 213-page annexure of evidence to support its claims.

Citing official maps of the protected site and the metropolitan authority’s influence zone, the NGO stated that the survey numbers cover 14.7 acres within the wetland boundaries, which were notified in 2022. Despite this, the developer behind the project applied to SEIAA for environmental clearance in August 2023 and to the metropolitan authority for construction plan approval in February 2024, proposing 1,250 dwelling units. The NGO accused the developer of falsely claiming that the project site was 1.2 km away from the wetland, whereas in reality, it is adjacent to a survey number recorded as part of the wetland in government records.

While SEIAA granted permission for an Environmental Impact Assessment (EIA) and sought further details — including the project’s exact boundary coordinates in relation to the wetland — the developer reportedly asked forest officials for clarification. Following an inspection, the Forest Department stated that the site was 65 metres from the wetland, with a “revenue land parcel” in between. However, the NGO noted that the survey number of this intervening parcel was not disclosed, calling it a sign of possible irregularities.

The NGO further cited historical land records, stating that in the 1911 resettlement register, the last survey number was 445. A survey number corresponding to the wetland was later subdivided to create new numbers, facilitating the conversion of wetland into revenue plots. The total area under this survey number, once 643.9 acres in 1911, had shrunk to just 6.1 acres by 1993. Today, only 50 acres are officially marked as wetland.

According to the Wetlands (Conservation and Management) Rules, 2017, wetlands cannot be converted for non-wetland use, and permanent construction is strictly prohibited. A convenor of the NGO stated that the wetland is designated as a protected area. "This is a clear case of collusion," they said. Repeated attempts to contact the relevant officials for comment were unsuccessful. A spokesperson for the developer said, “This is a joint development project with the landowner. The land is privately held.”

 

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