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The Supreme Court upheld the Brihanmumbai Municipal Corporation's (BMC) ownership of a INR 660 crore, five-acre plot in Lower Parel, reversing a Bombay High Court ruling favoring Century Textiles (now Aditya Birla Real Estate). The land, leased in 1927 for worker housing, was intended to revert to the BMC after the lease expired in 1955. Century Textiles' 2017 ownership claim was dismissed, with the court emphasizing its worker welfare purpose. BMC officials plan development under Regulation 35 of the Development Control and Promotions Rules to benefit mill workers. The ruling underscores the importance of community-focused urban planning amid rising commercial pressures.
The Supreme Court has reversed a previous decision by the Bombay High Court regarding a five-acre plot of land in Lower Parel. This land, initially allocated to Century Textiles and Industries Limited (now part of Aditya Birla Real Estate Limited), will remain under the ownership of the Brihanmumbai Municipal Corporation (BMC). The court criticized the private company for attempting to convert the land, originally designated for worker welfare, into a commercial asset. Advertisement
The BMC valued the property at approximately INR 660 crore based on the Ready Reckoner rates for the 2024-2025 fiscal year. Following the Supreme Court's decision, BMC officials inspected the site, which currently houses mill workers. The land was originally leased to Century Spinning and Manufacturing Limited in 1927, intended to provide housing for workers for a period of 28 years. The lease agreement included provisions for housing and shops, but it expired in 1955, after which ownership was supposed to revert to the BMC.
In 2017, Century Textiles filed a petition to claim ownership of the land, arguing that it should automatically transfer to them after 30 years. The BMC opposed this claim, leading to a high court ruling in favor of Century Textiles in March 2022. The BMC subsequently appealed to the Supreme Court, which stayed the high court's decision in July 2022. The recent judgment, delivered on January 7, 2025, confirmed that the BMC was not legally required to transfer the land.
A BMC official stated that the municipal corporation is currently seeking legal advice on the future use of the land. The official emphasized that the property was meant to benefit the workers, not serve as a commercial development. The land is set to be developed in accordance with Regulation 35 of the Development Control and Promotions Rules (DCPR), which focuses on the welfare of cotton textile mill workers.
This case highlights the ongoing challenges faced by mill workers in Mumbai, many of whom continue to reside on such properties. The Supreme Court's ruling not only reinforces the BMC's ownership but also underscores the importance of adhering to welfare schemes designed to support vulnerable communities. As the BMC plans its next steps, the future of the mill workers living on this land remains a priority in discussions about development and urban planning in the city.
The ruling also raises broader questions about land use in urban areas, particularly regarding the balance between commercial interests and community welfare. As cities like Mumbai continue to grow, the need for affordable housing and worker support becomes increasingly crucial. The BMC's commitment to maintaining ownership of the land and prioritizing the needs of mill workers could serve as a model for similar urban challenges across India.
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