Two police constables of the Mumbai Police have also come under the scanner for allegedly threatening illegal tenants to pay bribes to stay on at the quarters. Investigations reveal that at least 100 quarters were allotted this way. CBI officials suspect the number to be at least 500.

The two arrested officials are Madan Mohan Banerjee, the Assistant Estate Manager holding additional charge as Estate Manager, and his office assistant Chengan Prakash Raman. They have been booked under the Prevention of Corruption Act and remanded in CBI custody. Charges of extortion and cheating are also likely to be pressed.

“This is a serious racket of allotment of government quarters by officials of the Directorate of Estates in the city where there are about 8,500 government quarters in different localities. The two officials used to generate false applications to allot quarters to fictitious people. They would ask agents to bring tenants for subletting the quarters. The tenant paid a year’s rent in advance for the quarters,” said Rishi Raj Singh, Joint Director of the CBI’s Anti Corruption branch (Western Zone).

The agent would receive two months; rent and the remaining 10 months’ rent would be shared by the two officials. “The same officials would then send another agent to the same tenant to threaten them into paying a bribe by telling them they are living illegally in government quarters and that the police are aware of it. Two constables from the Antop Hill police station are involved in threatening tenants. We are sending a report to the police authorities,” said Singh.

Type 1, Type 2, Type 3 and Type 4 quarters, given to government officials depending on rank and years of service, were allotted in this illegal manner. CBI officials also stated that the two officials charged an additional Rs 25,000 for upgrading a tenant to the next higher type having an additional room.

“They would also encourage encroachment on government land. Investigations in the past 48 hours reveal two cases in Antop Hill where spaces allotted for small refreshment shops have been developed illegally into large shopping centres or doctor’s clinics,” said Abhin Modak, SP with the CBI.

Singh has written to his subordinates in Pune, Nagpur, Gandhinagar and Goa to investigate whether a similar racket has been operating in their areas.