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The Brihanmumbai Municipal Corporation’s Improvement Committee has approved a 30-year lease of about 25,543 sq m of its Century Mills land in Lower Parel to Peddar Realty Ltd for redevelopment at a consideration of INR 1,321 crore. The agreement includes an option to extend the lease by another 30 years. The proposal concerns an existing mill workers’ colony comprising 23 buildings, 476 residential tenements and 10 shops. Eligible occupants are to be rehabilitated as part of the redevelopment. The approval faced opposition from Shiv Sena (UBT) and Congress members over the terms and proposed use of the civic land.
The Brihanmumbai Municipal Corporation’s Improvement Committee approved on Friday, August 14, the leasing of about 25,543 sq m of BMC-owned land at Century Mills in Lower Parel to Peddar Realty Ltd for 30 years at INR 1,321 crore, with an option to extend the lease by a further 30 years.
The plot forms part of the former Century Mills premises and is occupied by a mill workers’ colony comprising 23 buildings, 476 residential tenements and 10 shops. The redevelopment proposal provides for the rehabilitation of eligible mill workers’ families as part of the project. The civic committee said the redevelopment would also create additional housing in the area.
Peddar Realty emerged as the highest bidder in the tender process. Earlier reports on the proposal stated that the developer had submitted a bid of INR 1,351 crore against the BMC’s reserve price of INR 1,348 crore. The approved lease consideration reported following the committee’s decision is INR 1,321 crore. Other developers that participated in the bidding process included K Raheja Corp, Keystone Realtors and Shapoorji Pallonji Real Estate.
The lease is structured on an “as is where is” basis, with the developer responsible for the redevelopment and rehabilitation obligations associated with the existing occupants. Earlier details of the tender indicated that eligible mill workers’ families would have to be provided rehabilitation homes with a minimum carpet area of 405 sq ft. The civic body has also retained provisions relating to possession of the land at the end of the lease period if it is not extended.
The Century Mills property has a long history linked to the former mill industry in central Mumbai. The original lease was granted to Century Spinning and Manufacturing Ltd, now Century Textiles & Industries Ltd, for 28 years from April 1, 1927, for housing employees from the poorer sections. That lease expired in 1955. The BMC subsequently reclaimed the property following prolonged legal proceedings, according to reports on the civic proposal.
The proposal drew opposition from Shiv Sena (UBT) and Congress members of the civic committee. Opponents questioned whether the BMC was receiving an adequate return from a valuable parcel of land that had been reclaimed after prolonged litigation. They also argued that the property could instead have been used for a public amenity.
Shiv Sena (UBT) corporator Vishakha Raut raised concerns about the rehabilitation provision and said the civic body should have ensured larger homes for mill workers’ families. Another corporator, Sachin Padwal, questioned whether sufficient efforts had been made to attract bidders and sought clarity on whether the terms and conditions had been altered in a manner that favoured a particular developer. Padwal and fellow corporator Vitthal Lokre protested after the proposal was approved by tearing copies of the document.
Improvement Committee chairperson Sandhya Doshi said efforts would be made to ensure that mill workers’ families were provided homes at the same location. The committee’s decision therefore clears the way for the long-term redevelopment of the Century Mills parcel while retaining rehabilitation obligations for eligible occupants.
The committee also approved two other land-related proposals during the meeting. One involved deleting an existing reservation for a sports complex or stadium on part of a plot in Mulund East and replacing it with a petrol pump. Another provided for nearly 9,000 sq m of BMC land in Lower Parel to be incorporated into a Slum Rehabilitation Authority scheme, under which the civic body will receive 189 rehabilitation flats and a 25% land premium.
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