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The Brihanmumbai Municipal Corporation (BMC) has received bids from four major developers for a prime six-acre land parcel in Lower Parel, with a base lease price of INR 1,348 crore. The land is being offered on a long-term lease under DCPR 2034 provisions, with the selected bidder required to rehabilitate existing occupants. The move follows a Supreme Court ruling that confirmed BMC’s ownership after a long legal dispute. The proposal is currently under review, with final approvals pending before the project moves to the next stage.
The Brihanmumbai Municipal Corporation (BMC) has received bids from four prominent developers for a prime six-acre land parcel located in Lower Parel, marking progress in its plan to monetise high-value municipal land. The bidders include Shapoorji Pallonji, K Raheja Corp, Peddar Realty associated with the JSW Group, and Keystone Realtors (Rustomjee), reflecting strong interest in centrally located land despite development conditions. Advertisement
The civic body has set a base lease price of INR 1,348 crore for the plot and is offering it under the Development Control and Promotion Regulations (DCPR) 2034. The land will be leased for a period of 30 years, with an option to extend the lease by another 30 years. The structure is designed as a long-term revenue-generating model rather than an outright sale, which aligns with BMC’s approach to retain ownership while unlocking land value.
As per the tender conditions, the selected developer will have to take possession of the land on an as-is basis. This includes handling the rehabilitation of existing occupants present on the site. The presence of structures and occupants is a key factor in the project, and the cost and execution of rehabilitation will be part of the developer’s responsibility. This condition may influence the financial planning and timelines of the project.
The proposal is currently under administrative review and will be placed before the civic improvements committee for further approval. It is understood that concerns have been raised regarding the absence of a clearly defined project timeline in the tender document. Officials are expected to address this by introducing execution timelines at the approval stage to ensure better monitoring and completion.
The tender process was initiated after the resolution of a long-standing ownership dispute related to the land. The plot had originally been leased in 1927 to Century Spinning and Manufacturing Company for 28 years at a nominal rent. Although the lease expired in 1955, the ownership remained contested for several decades, delaying any redevelopment plans.
The matter went through multiple legal stages. The Bombay High Court had earlier directed the BMC to execute a conveyance deed in favour of the company. However, the Supreme Court later set aside this order and ruled in favour of the civic body, confirming its ownership rights. This decision allowed the BMC to proceed with plans to lease and redevelop the land.
Following the court ruling, the civic body carried out a detailed survey of the plot to document existing structures, encroachments, and site conditions. This assessment was important in preparing the tender and informing bidders about the ground realities of the project.
The Lower Parel land parcel is located in one of Mumbai’s key commercial and mixed-use zones, where land availability is limited. Over the years, the area has seen the transformation of old mill lands into commercial towers, offices, and residential developments. The current proposal is expected to add to this ongoing redevelopment trend while contributing to the BMC’s revenue generation efforts.
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