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The Bombay High Court was informed that a 24-acre land parcel near the Bandra-Worli Sea Link toll plaza, earmarked for commercial development, falls outside the coastal regulation zone (CRZ). This clarification, provided by the Union environment ministry and Adani Realty, counters PILs challenging the land allotment. The Maharashtra State Road Development Corporation (MSRDC) awarded the project to Adani Realty in 2024, expecting to generate INR 8,000 crore for infrastructure development. Adani Realty, also leading the INR 23,000 crore Dharavi Redevelopment Project, has pledged compliance with environmental and urban development regulations before commencing construction.
A 24-acre land parcel near the Bandra-Worli Sea Link toll plaza, earmarked for commercial development, has been deemed entirely outside the coastal regulation zone (CRZ). This clarification was made by the Union environment ministry and Adani Realty in the Bombay High Court last week in response to two public interest litigations (PILs) challenging the allotment of the land to the developer. Advertisement
The PILs, filed by activist Zoru Bhathena and the Bandra Reclamation Area Volunteers Organisation, contended that environmental clearance for the Bandra-Worli Sea Link had been granted on the condition that the reclaimed land near the toll plaza would not be used for commercial purposes. They further argued that the tender process for land allotment violated this condition and that CRZ regulations prohibit such development on reclaimed land.
Senior counsel Milind Sathe, representing the Maharashtra State Road Development Corporation (MSRDC), which was made a party to the PILs, stated in October 2024 that Mahim Creek is classified as a bay. As per CRZ regulations, restrictions in bay areas extend only up to 100 metres instead of 500 metres from the sea, thereby excluding the contested land from CRZ restrictions.
The Union ministry reiterated its stance, citing its December 5, 2024, affidavit and the 2019 CRZ notification, which superseded previous regulations. The affidavit referred to an October 2024 report from the Institute of Remote Sensing, Anna University, Chennai, confirming that the project site falls outside the CRZ, as per the approved Coastal Zone Management Plan (CZMP).
Adani Realty stated that the plot is not designated as open space, park, or garden under the Development Plan 2034, making it eligible for development. MSRDC and the Maharashtra Coastal Zone Management Authority also affirmed this stance in their respective replies. It also emphasised that the current use of the land as a casting yard does not justify restoring it as a green space under CRZ norms. The affidavit also highlighted that any construction on the site would begin only after obtaining the necessary environmental impact assessment clearances.
Providing historical context, Adani Realty's affidavit explained that the Government of Maharashtra had sought permission to reclaim land for the Bandra-Worli Sea Link in 1993. While the 1991 CRZ notification initially prohibited such reclamation, a 1997 amendment permitted it for infrastructure projects such as sea links. Environmental clearance was granted in 1999, leading to the completion of the sea link in 2009. The reclaimed land was later transferred to MSRDC in 2016, with conditions requiring adherence to development regulations and necessary approvals.
MSRDC had invited bids in January 2024 for the development of a 57-acre parcel, with 29 acres allocated for social amenities, roads, and gardens, while 28 acres were marked for commercial and residential development. The 24-acre Bandra Reclamation plot, facing Mahim Bay and along the Sea Link approach road, was part of this tender process. The land has been designated for commercial and residential purposes under the Development Control and Promotion Regulations (DCPR) 2034.
A number of developers attended the pre-bid meeting, but strict eligibility criteria to have a net worth of INR 15,000 crore narrowed down the competition to just three contenders. Mayfair Housing got eliminated, and among the two left, Adani quoted the highest revenue share percentage to MSRDC, winning the contract in March 2024.
MSRDC hopes to raise a minimum of INR 8,000 crore from this project to fund infrastructure projects. In Phase 1 of development, the successful bidder will use 6-7 acres where MSRDC's office is located. The bidder must shift MSRDC's office and deliver a fully equipped 50,000 sq ft office within a five-kilometre radius of its current location.
Adani Realty also cited its involvement in another major redevelopment initiative, the INR 23,000 crore Dharavi Redevelopment Project. It has created an SPV named Navbharat Mega Developers Private Limited (NMDPL) for this purpose. Recently, 85,000 tenements were numbered and over 50,000 were surveyed in a door-to-door exercise. NMDPL said that over 150,000 tenements would be rehabilitated, ensuring better housing, infrastructure and economic opportunities for Dharavi's people.
The HC judgement and the subsequent clarifications from key stakeholders have paved a clear path for the contested 24-acre parcel to transition into a hub for commercial and residential development. With regulatory interpretations confirming its exemption from CRZ restrictions and adherence to the approved Coastal Zone Management Plan, the move not only resolves the legal challenges but also sets the stage for significant infrastructural and economic growth in the region. As MSRDC gears up to raise vital funds for broader infrastructure projects and Adani Realty builds on its expansive redevelopment portfolio, the outcome underscores a measured yet progressive approach to urban renewal-balancing development ambitions with necessary environmental and regulatory oversight.
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