Mumbai Redevelopment Update: BMC Picks Peddar Realty’s ₹1,351-Crore Bid For Century Mills Plot In Lower Parel

Mumbai, August 10, 2026: The BMC has selected M/s Peddar Realty Ltd. as the highest bidder for its 23,822 sq m Century Mills plot in Lower Parel, with a Rs 1,351-crore bid under a 30-year lease extendable by another 30 years through the public-private partnership (PPP) model.

The redevelopment is set to provide permanent homes to 650 former mill-worker families, nearly two decades after the issue first arose. The proposal has been placed before the BMC Improvement Committee for final approval on Wednesday.

Peddar Realty Emerges Highest Bidder

The BMC had set a reserve price of Rs 1,348 crore for the prime Century Mills plot, with four developers — Peddar Realty, K Raheja Corp, Keystone Realtors and Shapoorji Pallonji Real Estate — submitting bids when the tender opened in December.

Peddar Realty emerged as the highest bidder at Rs 1,351 crore, just 0.22 per cent above the base price. The six-acre plot houses 23 buildings, 476 tenements occupied by eligible mill-worker families and 10 shops.

Permanent Rehabilitation After 20 Years

Nearly 20 years after Century Mills shut in December 2006, 476 mill-worker families are finally set to get permanent rehabilitation. The proposed redevelopment will feature a high-rise residential complex on the lines of Maharashtra Housing and Area Development Authority (MHADA) projects, with rehabilitation flats for eligible families and additional units sold in the open market to generate revenue for the BMC.

The new flats are expected to measure around 405 sq ft, depending on the redevelopment scheme adopted by the developer. Officials said the project could also be executed under cluster redevelopment provisions of the DCPR applicable to dilapidated structures.

Supreme Court Ruling On Land

The plot was originally leased to M/s Century Spinning and Manufacturing Ltd. (now Century Textiles & Industries Ltd.) for 28 years from April 1, 1927, to house employees from the poorer class. The lease deed was executed on October 3, 1928, and expired in 1955.

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After the lease lapsed, the company sought to transfer the land in its name instead of returning it. The BMC challenged the move in the Supreme Court of India. In January 2025, the apex court ruled in favour of the civic body, affirming that the land rightfully belongs to the BMC.

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