Opposition Opposes BMC Plan to Lease Lower Parel Century Mill Land for ₹1,351 Crore
The Brihanmumbai Municipal Corporation's proposal to grant a 30-year lease for the prime Century Mill plot in Lower Parel to a private developer has triggered strong opposition from the Congress and Shiv Sena (UBT). Ahead of next week's BMC General Body meeting, political leaders have demanded that the civic body halt the deal, alleging that the 23,822-square-metre plot is being undervalued at ₹1,351 crore against an estimated development potential of ₹13,000 crore.
The civic body selected M/s Peddar Realty Ltd. as the highest bidder under a public-private partnership model. The contract covers a 30-year lease, extendable by another 30 years. Although the proposal was cleared by the BMC's Improvement Committee despite objections from opposition parties, it requires final clearance from the civic house.
In a letter addressed to Municipal Commissioner Ashwini Bhide and Mayor Ritu Tawde, Azmi urged the BMC to put the lease on hold. Azmi noted that the 6.17-acre plot could yield approximately 13 lakh square feet at 5 FSI, creating a gross development value of around ₹13,000 crore. He stated that the municipal corporation should not transfer massive development potential on public land to a private firm without ensuring fair value, arguing that the BMC must assess developing the site itself to protect Mumbai's long-term financial interests.
Azmi also raised questions regarding the rehabilitation framework for former mill-worker families. He stated that the BMC fought decades of legal battles to reclaim the property and must now disclose full project details before transferring possession. These requirements include temporary accommodation plans, the exact location and carpet area of permanent homes, the sanctioned layout, completion deadlines, and enforceable safeguards against developer default.
The redevelopment project is slated to provide permanent housing to 476 former mill-worker families, nearly two decades after Century Mills closed in December 2006. The proposed plan outlines a high-rise residential complex featuring rehabilitation flats of around 405 square feet for eligible families, alongside additional units designated for open-market sale to generate civic revenue.
The Century Mill plot was originally leased to Century Spinning and Manufacturing Ltd. in 1927. After that lease expired in 1955, the company sought to retain the land, leading to extended litigation with the civic body. In January 2025, the Supreme Court ruled in favour of the BMC, officially affirming its ownership of the Lower Parel land.
