Peddar Realty Wins Rs 1,351-Crore Bid for Lower Parel Century Mills Plot
The Brihanmumbai Municipal Corporation (BMC) has selected M/s Peddar Realty Ltd. as the highest bidder to redevelop the 23,822-square-metre Century Mills plot in Lower Parel, Mumbai. The developer submitted a Rs 1,351-crore bid under a 30-year lease agreement, extendable by another 30 years through a public-private partnership model, on August 10, 2026.
The proposal has been placed before the BMC Improvement Committee for final approval on Wednesday. The redevelopment project is set to provide permanent housing to former mill-worker families nearly two decades after the mill closed down.
The civic body had established a reserve price of Rs 1,348 crore for the six-acre plot. Peddar Realty emerged as the top bidder, submitting an offer 0.22 per cent above the base price. Three other developers—K Raheja Corp, Keystone Realtors, and Shapoorji Pallonji Real Estate—had also submitted bids when the tender process opened in December.
The six-acre site currently houses 23 buildings, 476 tenements occupied by eligible mill-worker families, and 10 shops. In total, the redevelopment scheme is set to rehabilitate 650 former mill-worker families, ending a wait that began when Century Mills shut down in December 2006.
Under the proposed redevelopment plan, a high-rise residential complex will be constructed along the lines of Maharashtra Housing and Area Development Authority (MHADA) projects. The developer will build rehabilitation flats measuring around 405 square feet for eligible families, depending on the final redevelopment scheme adopted. Additional units will be sold in the open market to generate revenue for the BMC. Civic officials stated that the project could also be executed under cluster redevelopment provisions of the DCPR applicable to dilapidated structures.
The land was originally leased to M/s Century Spinning and Manufacturing Ltd., now known as Century Textiles & Industries Ltd., for 28 years starting April 1, 1927, to house employees from the poorer class. The lease deed was executed on October 3, 1928, and expired in 1955.
Following the expiration of the lease, the company attempted to transfer the property into its own name rather than returning it to the civic body. The BMC challenged the action in the Supreme Court of India. In January 2025, the apex court ruled in favour of the municipal corporation, affirming that the land rightfully belongs to the BMC.
