Congress Opposes 30-Year Lease of Lower Parel Century Mill Land to Peddar Realty

Congress BMC group leader Ashraf Azmi has opposed a proposal to lease 23,822 square metres of prime Century Mill land in Lower Parel to Peddar Realty Ltd for 30 years, with an option for an extension of another 30 years.

Azmi questioned why a valuable municipal asset reclaimed after a decades-long legal battle should be handed over to a private developer for up to six decades. He stated that the municipal land should instead be used for mill workers, existing residents, and the wider public through rehabilitation, project-affected persons housing, open spaces, and civic amenities.

The proposal involves a consideration of Rs 1,351 crore. Azmi challenged this valuation, citing an indicative development potential of 10.75 lakh square feet and a potential gross development or sale value of nearly Rs 7,000 crore.

Before the Civic Improvements Committee sanctions the proposal at its upcoming meeting, Azmi demanded an independent valuation and a comparative assessment against a BMC-led development model. He also called for clear safeguards regarding nearly Rs 1,000 crore in deferred payments.

The redevelopment plan comes nearly 20 years after Century Mills shut operations in December 2006. Under the project, 476 mill-worker families are slated to receive permanent rehabilitation on the Lower Parel plot.

The proposed development includes a high-rise residential complex featuring rehabilitation flats of around 405 square feet for eligible families, with additional units to be sold on the open market to generate revenue for the Brihanmumbai Municipal Corporation.

The parcel was originally leased to Century Spinning and Manufacturing Ltd in 1927 to house poorer-class employees. Following the expiry of the lease in 1955, the land was entangled in a prolonged ownership dispute. In January 2025, the Supreme Court ruled in favour of the BMC, affirming civic ownership and clearing the path for redevelopment.