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The Brihanmumbai Municipal Corporation (BMC) will place a proposal before its Improvements Committee on August 12 for leasing the 23,822 sq m Century Mills plot in Lower Parel to Peddar Realty Ltd for redevelopment. Peddar Realty emerged as the highest bidder with an offer of INR 1,351 crore, marginally above the civic body’s INR 1,348 crore reserve price. The 30-year lease covers a site with existing mill-worker tenements and shops. The redevelopment is expected to provide rehabilitation housing to eligible former mill workers’ families, while the remaining development is intended to generate revenue for the civic body.
The Brihanmumbai Municipal Corporation (BMC) is set to consider the INR 1,351 crore bid submitted by Peddar Realty Ltd for the redevelopment of the Century Mills plot in Lower Parel at its Improvements Committee meeting on August 12. The proposal seeks approval to lease the 23,822 sq m parcel to the developer for 30 years.
Peddar Realty emerged as the highest bidder in the tender process, offering INR 1,351 crore against the BMC’s reserve price of INR 1,348 crore. The bid was marginally higher, by around 0.22%, than the civic body’s base price. Three other developers — K Raheja Corp, Keystone Realtors and Shapoorji Pallonji Real Estate — had also participated in the bidding process.
The redevelopment is centred on the existing Century Mills workers’ colony, which comprises 23 buildings, 476 residential tenements and 10 shops, according to the civic proposal. The site is occupied by eligible families of former mill workers, many of whom have remained in the colony for years following the closure of the mill.
Under the proposed arrangement, the developer will be responsible for rehabilitating eligible occupants as part of the redevelopment. The new rehabilitation homes are expected to provide a larger living area than the existing tenements, with the civic body’s terms specifying a minimum carpet area of 405 sq ft for eligible residents.
The project is expected to involve redevelopment of the existing structures into a high-rise residential complex. While rehabilitation housing will be provided to eligible occupants, additional residential units can be developed and sold, forming part of the commercial component of the project and enabling the developer to undertake the redevelopment under the prescribed regulations.
The land has been at the centre of a long-running ownership dispute. It was originally leased to Century Spinning and Manufacturing Ltd in 1927 for a period of 28 years, with provisions relating to housing for employees. The lease expired in 1955, after which the BMC’s ownership of the land became the subject of prolonged litigation.
The legal dispute continued for several years following the closure of Century Mills in 2006. The Supreme Court’s ruling in favour of the BMC subsequently cleared the way for the civic body to proceed with redevelopment of the property.
The proposed lease also places rehabilitation responsibilities on the successful developer. The plot is being offered on an “as is where is” basis, while the BMC has retained provisions concerning possession of the land after the lease period.
If approved by the Improvements Committee, the proposal would allow the BMC to proceed with appointing Peddar Realty and move the redevelopment project towards implementation. For the former mill workers’ families living on the site, the decision represents a significant step towards replacing the ageing colony with permanent rehabilitation housing after years of uncertainty.
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