Mumbai: The BMC’s proposed 30-year lease of prime Century Mill land in Lower Parel to a private developer has sparked a strong Congress backlash ahead of its likely final approval at next week’s General Body meeting. The party has accused the civic body of settling for around Rs. 1,300 crore for land with an estimated development potential of Rs. 13,000 crore, and demanded a comprehensive assessment of whether the BMC can develop the property itself and secure its long-term financial and public value for Mumbai.
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 will provide permanent homes to former mill-worker families, nearly two decades after the issue was first raised. However, despite opposition from the Congress and Shiv Sena (UBT), the proposal was cleared by the Improvement Committee and will now be placed before the civic house for final approval.
Congress raises valuation concerns
In a letter to Municipal Commissioner Ashwini Bhide and Mayor Ritu Tawde, Azmi demanded that the BMC put the proposed lease on hold, citing serious concerns over public interest, land valuation, rehabilitation and the city’s long-term financial interests. He said the 6.17-acre Century Mill plot could yield around 13 lakh sq ft at 5 FSI, with an estimated gross development value of Rs. 13,000 crore.
Azmi warned that the proposal could effectively transfer a huge development opportunity on prime public land to a private developer without establishing whether the city is receiving fair value. “It cannot be reduced to a simple exercise of monetising municipal land,” he said.
Questions over rehabilitation plan
Azmi said the BMC fought for decades to reclaim the land and must now justify why it is handing its enormous development potential to a private developer for a fraction of its estimated value instead of retaining the benefit for Mumbai.
He has questioned where every eligible mill worker’s family will be rehabilitated. Before handing over possession or development rights, the BMC must disclose the temporary accommodation plan, location of permanent homes, carpet area and tenure offered, sanctioned rehabilitation layout, completion deadline and legally enforceable safeguards against developer delays or default.
Century Mill redevelopment details
Nearly 20 years after Century Mills shut in December 2006, 476 former mill-worker families are finally set for permanent rehabilitation.
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The proposed redevelopment will feature a high-rise residential complex, with around 405 sq ft rehabilitation flats for eligible families and additional units for open-market sale to generate BMC revenue.
The plot was originally leased to Century Spinning and Manufacturing Ltd. in 1927. After the lease expired in 1955, the company sought to retain the land, prompting a legal battle with the BMC.
In January 2025, the Supreme Court ruled in favour of the BMC, affirming its ownership of the prime Century Mill land.
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