Chikhali-Kudalwadi Demolitions: Economic Havoc, ‎Human Tragedy, and Unanswered Questions

The civic authorities demolished over 4,031 structures in seven days, including scrap yards, industrial godowns, industrial sheds and small-scale factories. The demolition work was carried over a colossal 791 acres leaving thousands without business and jobs.

Written by

Arshad Shaikh

Published on

February 25, 2025

The recent demolition drive by the Pimpri-Chinchwad Municipal Corporation’s (PCMC) in Chikhali-Kudalwadi has caused immense destruction, raising serious questions about its effectiveness, purpose and impact. The civic authorities demolished over 4,031 structures in seven days, including scrap yards, industrial godowns, industrial sheds and small-scale factories. The demolition work was carried over a colossal 791 acres leaving thousands without business and jobs.

The PCMC has defended the action, citing the condition of the buildings, violation of environmental laws and fire safety norms. Officials said the structures were unauthorised and in violation of the Maharashtra Pollution Control Board Act. They were erected without the approval of the Corporation or its Civic department.

The demolition has caused an estimated economic loss of Rs.7,600 crore and another Rs.1,500 crore is likely to be lost. The Pimpri-Chinchwad Small Scale Industries Association has lamented the loss of around 2 lakh jobs, which has hit daily wage workers, especially migrants from Uttar Pradesh, Bihar and West Bengal.

Communal Narratives and Targeted Displacement?

Adding further complexity to the demolition exercise are the repeated claims by local BJP leaders, including Bhosari MLA Mahesh Landge, that the area is home to illegal Bangladeshi immigrants. This narrative gained more traction after the massive fire at the scrap godown cluster last year, which led to allegations that illegal Bangladeshi nationals were responsible for various municipal violations, crimes and potential security threats.

However, official police data belie these claims. Police records do not show any significant number of illegal migrants being arrested in Kudalwadi. Despite this, the bogey of illegal Bangladeshis was used as an excuse to crack down on illegal structures leading to evictions on a large scale.

Reports suggest that around 80% of the affected businesses are owned by Muslims, particularly those involved in the scrap trade. While PCMC Commissioner Shekhar Singh has denied any communal angle to the demolition exercise, those opposed to the PCMC action, argue that the campaign disproportionately targets one community under the pretext of urban planning and encroachment clearance.

A Ghost Town Replaces a Thriving Market

Thousands of workshops in Kudalwadi and Chikhali supplied spare parts to the growing automobile industry. The scrap industry, though illegal, plays a vital role in recycling and industrial supply chains. Today, what remains is a ghost town, where livelihoods have been wiped out overnight. Manufacturers lamented that they were not given enough time to shift to some other location.

Talking to a media outlet, an industrial shed owner asked, “How can a business shift to a new location in just 15 days? It takes months to move machinery and set up shop somewhere else.”

The shed owner had two industrial units, which employed 25 workers. Despite having GST registration and paying property taxes, his business was decimated in a matter of minutes. Many small business owners will face bankruptcy as they cannot repay the loans they took to set up their businesses.

The sudden economic crisis will also have far-reaching consequences. In cities like Mumbai, Surat, Nashik, and Jalna, traders who rely on Kudalwadi’s scrap industry will struggle for getting cheap raw material. At the same time, the clearance of nearly 1,000 acres of land has caused great excitement in the property market.

Real estate developers are eyeing this land for upscale commercial ventures. This has led to growing speculation that the campaign was orchestrated to serve the interests of the builder lobby, ultimately harming small business owners.

Families Pushed to the Brink

The demolitions have caused immense economic devastation, but the human cost has been even greater. Many workers and business owners who were living in that area for decades are suddenly homeless and destitute. “Nothing is left, everything is destroyed. How will I feed my children?” lamented another middle-aged scrap dealer whose warehouse was reduced to a pile of rubble.

The sentiment is echoed by thousands of others who have lost not only their businesses but their entire livelihoods. Women and children have been hit hardest, with many families sleeping on the streets or taking shelter in makeshift tents.

“My husband worked here in a scrap shop for ten years. Now we have nothing. We are eating food given by charities,” said a homeless resident while being interviewed by a news channel.

Local workers of Jamaat-e-Islami Hind (JIH) Maharashtra are providing relief and assistance to the affected. The organisation has demanded an end to the demolitions that are likely to continue to other areas of PCMC. JIH Maharashtra President Maulana Ilyas Khan Falahi criticised the authorities for failing to provide alternative means of livelihood or give adequate notice before the demolition.

“In the Haldwani eviction case, the Supreme Court ruled that human rights must be upheld in such situations. The sudden destruction of houses and businesses without restoration violates these principles,” he said in a press statement.

A Legal and Ethical Quandary

The PCMC insists that the demolition is backed by official procedures like issuing proper notices to those who were allegedly occupying the PCMC land illegally. However, critics say that the due process was not followed. Many business owners claim that they were never given a fair chance to regularise their operations.

“The city administration has been collecting taxes from these units for the last several decades and also providing electricity and water connections. How can they declare them illegal overnight?” asked journalist Sandeep Belsare, who called the action “inhumane and unreasonable”.

Environmental activist Prashant Rawal suggested that instead of demolishing entire industries, the city administration should set up a designated scrap market. “These businesses are important for industrial recycling. Instead of destroying livelihoods, the authorities could have planned a systematic industrial zone for them.”

With thousands of families facing loss of livelihood, civil society groups are demanding immediate action from the government. According to legal experts, business owners affected by the demolitions may file cases in the higher courts and seek compensation or relocation. Unfortunately, the Bombay High Court upheld the PCMC’s position and refused to grant relief to the affected business owners. In the judgment delivered on February 4, a bench of Justices Kamal Khata and A.S. Gadkari dismissed several petitions, saying the constructions were “clearly illegal and unauthorised”.

The state government has not clarified its position on the issue. Elections are over and the Opposition has not taken up the issue in a big way. However, it is certain that this demolition campaign has not only destroyed buildings but also erased dreams, shattered families and left the entire community facing an uncertain future.