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The Brihanmumbai Municipal Corporation (BMC) recently revised its auction plans for prime plots in Worli, Crawford Market, and Malabar Hill. Due to a lack of bids, the auction for the Worli plot will be retendered, while the Crawford Market plot auction has been paused on the orders of the Chief Minister following concerns raised by the local fishing community. The Malabar Hill plot, which houses an important electricity station, will not be auctioned due to the high cost of relocation. The retendering process for the Worli asphalt plant plot is still on track.
The Brihanmumbai Municipal Corporation (BMC) revised its auction strategy for three key plots located in Worli, Crawford Market, and Malabar Hill due to a lack of bids. The revised approach includes retendering the auction for the Worli plot, halting the auction of the Crawford Market plot on the Chief Minister's orders, and cancelling the auction for the Malabar Hill plot entirely. Advertisement
The Worli plot, initially part of the auction plan for December 16, is set to be retendered after receiving no bids. Meanwhile, the Crawford Market plot auction has been paused following a representation made by MLA Atul Bhosale to Chief Minister Devendra Fadnavis. The fishing community, which had raised concerns through Bhosale, was informed that the Chief Minister had instructed that the plot should not be auctioned until further notice.
The Crawford Market plot, which previously housed the Chhatrapati Shivaji Market and a four-storey building that accommodated several BMC offices, was demolished in 2015 after being declared dilapidated. However, following the concerns raised by the local community, the auction was paused indefinitely.
For the Malabar Hill plot, the BMC decided not to proceed with the auction of the 2,432-square-metre land, which currently hosts a Brihanmumbai Electricity Supply and Transport (BEST) receiving station. BEST informed the BMC that relocating the station would incur costs between INR 400 crore and INR 500 crore, with no nearby suitable location to house the facility. Given the station's role in supplying electricity to Malabar Hill, the coastal road, and several VIP bungalows, including those of ministers, the BMC chose to retain the plot for its current function.
The auction for the Worli asphalt plant plot, however, remains on track for retendering, pending approval from civic chief and administrator Bhushan Gagrani. Several prominent developers, including L&T, Godrej Properties, Welspun World, H N Safal, Runwal Developers, and DB Realty, had expressed interest during the pre-bid meeting held on November 12, but no bids were received by the December 16 deadline.
This would have marked the first instance where the BMC intended to lease out its prime plots for a 30-year period, with an option for renewal for another 30 years-a model commonly used by agencies like MMRDA and MSRDC to monetise land holdings and generate funds for infrastructure projects. The proceeds from these auctions were expected to contribute to various civic development projects.
The BMC's decision to revise its auction plans for prime city plots reflects the complexity of urban land development in Mumbai. While the halt on the Crawford Market auction and the retention of the Malabar Hill plot demonstrate the need for careful consideration of local concerns and essential infrastructure, the retendering of the Worli plot signals ongoing efforts to monetise valuable municipal assets. This shift in strategy is likely to impact the future of the city's real estate market, especially with the inclusion of long-term lease options aimed at funding civic projects.
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