Vasai: In a case raising serious questions about the protection of natural watercourses and accountability in public infrastructure projects, a 22 kV electricity switching station of the Maharashtra State Electricity Distribution Company Limited (MSEDCL) at Poman village in Vasai has been found to be standing partly within a natural rivulet. The total encroachment in the rivulet (stream) is around 6,500 square feet. Documents available with “Insider View” confirm this and also confirm that the then MSEB officials (in 2015/16) along with these accused developers ignored all government process and built a switching station. An FIR has now been registered against two partners of M/s Royal Industrial Hub a couple of days ago at Naigaon police station over allegations that an incorrect portion of land was handed over to MSEDCL, resulting in encroachment upon the stream and alleged public property loss of ₹4.81 crore.
The matter concerns land offered by Royal Industrial Hub in Survey No. 126, Hissa No. 1, at Poman village for establishing the switching station for their industrial layout. According to a letter dated February 5, 2026, issued by the Legal Advisor, Konkan Region, Kalyan, to the Superintending Engineer, MSEDCL, Vasai Circle, the company had offered approximately 20,000 sq. ft. of land for the project. Possession was reportedly taken by MSEDCL officials on June 30, 2015, from the accused Padamshi Kalyanji Gajra and Haresh Ramji Bhanushali, partners of Royal Industrial Hub. However, the legal review found that the departmental records did not contain documents establishing that the land had been officially measured and demarcated by government authorities before possession was taken. The lease deed for this land required for the switching station, was executed on March 21, 2015, and presented for registration on March 21, 2016.
The crucial finding emerged from a boundary settlement survey conducted on October 30, 2024. According to the legal advisor’s letter, the survey established that 624.48 square metres (around 6,500 square feet) of the land occupied by the switching station fell within the rivulet. A committee constituted following complaints by several activist also reportedly concluded that Royal Industrial Hub had made the wrong portion of land available, leading to MSEDCL’s encroachment upon the natural watercourse.
The implications go beyond a disputed land transaction. The legal advisor’s communication records that construction of the switching station within the stream had altered the flow of the rivulet, creating a potential threat to life and property of industries situated downstream. A natural drainage channel, which carries water through the landscape, was thus allegedly obstructed by infrastructure intended for public electricity distribution.
The committee recommended removal of the encroachment and action against the landowners. The legal advisor further stated that the switching station would have to be shifted to another appropriate location, with the landowners being asked to provide suitable alternative land and bear the shifting expenses. The letter also warned that criminal and civil action could follow if the required land was not made available.
An FIR was registered at Nagaon Police Station on October 27, 2026, under relevant sections of cheating and forgery naming Padamshi Kalyanji Gajra and Haresh Ramji Bhanushali as accused. The complaint records alleged public property loss of around ₹4,81,41,340.
Yogesh Vaidya, activist from Vasai said that: The land in question was handed over to MSEDCL by the developer to facilitate electricity connections for the industrial units within his project. As per MSEDCL’s Standard Operating Procedure (SOP), when a developer provides land for constructing a switching station to meet the electricity requirements of his project, the switching station is expected to be constructed under the DDF (Deposit Contribution Fund) or NSC scheme. However, in this case, MSEDCL constructed the switching station under the Government of India’s Rural Electrification Scheme. This raises serious questions and warrants an investigation into why this particular scheme was used instead of the applicable DDF or NSC scheme. Furthermore, the signboard installed at the actual site reportedly mentions an expenditure of ₹8.35 crore on the switching station. It is also alleged that the District Collector’s Office had issued an order on 30 June 2025 directing the demolition of the switching station constructed over the natural drain and the registration of a criminal case. Despite these directions, the structure has reportedly not been demolished to date. Another crucial aspect requiring investigation by a Special Investigation Team (SIT) is the number of industrial electricity connections provided through this switching station by MSEDCL officials from 30 June 2025 onwards. The investigation must establish whether these connections have created third-party interests and whether the officials concerned should also face criminal proceedings. Particular attention is now focused on what action will be taken against MSEDCL officials, especially Executive Engineer Pravin Sute, who was reportedly directed by the District Collector’s Office in June 2025 to remove the encroachment but allegedly failed to implement the order. The failure to remove the encroachment from the natural drain has also raised questions about accountability for the flooding witnessed in Vasai, which reportedly disrupted railway services and resulted in financial losses to both government and private entities. The key question now is: What action will be taken against the MSEDCL officials responsible for failing to comply with the District Collector’s directions, and will the investigation extend to the subsequent industrial electricity connections provided through the disputed switching station?
