BMC panel approves 30-year lease of Mumbai's Century Mills plot to Peddar Realty for ₹1,321 crore
The Brihanmumbai Municipal Corporation (BMC)'s Improvement Committee on Friday approved the leasing of a 25,543 square metre plot at the former Century Mills compound in Mumbai for a period of 30 years. The plot will be handed over to Peddar Realty Ltd, a Mumbai-based developer, for redevelopment at a lease amount of ₹1,321 crore.
The committee, which deals with BMC-owned plots, buildings and other properties, is chaired by Sandhya Vipul Doshi of the Shiv Sena (Shinde group), who was elected unopposed on February 23. The approval was granted on the grounds that the redevelopment would help rehabilitate workers' families and create additional housing opportunities.
According to the BMC proposal, Peddar Realty emerged as the highest bidder in the tender process, offering ₹1,351 crore against the BMC's quoted price of ₹1,348 crore. The winning bid was only 0.22% higher than the reserve price. Other bidders included K. Raheja Corp, Keystone Realtors and Shapoorji Pallonji Real Estate.
The redevelopment project covers the Century Mills workers' colony, which comprises 23 buildings, 476 residential tenements and 10 shops. Under the terms of the lease, the developer will rehabilitate eligible residents, providing them with a minimum carpet area of 405 square feet. The project also includes the development of commercial and residential units.
The decision, however, faced opposition from members of the Shiv Sena (UBT) and Congress. They argued that the land parcel is located in a prime area and should be used for public housing and long-term public value creation rather than being handed over to a private developer.
Vishakha Raut, a Shiv Sena (UBT) leader, said, “If reservation has to be changed then close the DP (Development Plan) department. The DP was made after suggestions and objection. All these reservation change proposals are driven by personal agenda. They have majority so we are helpless.”
Another Shiv Sena (UBT) corporator, Sachin Padwal, asked the committee to rename itself as the “Reservation Change Committee”, saying, “From last six months at least 40 reservation change proposals are approved. You want to privatise everything.”
The plot has a complex history. In 1927, it was leased to Century Spinning and Manufacturing Ltd for 28 years for housing its employees. Ownership of the land was later disputed, but following a Supreme Court judgment on January 7, 2025, the land was transferred to the BMC.
During the meeting, concerns were also raised about the legality of the approval. Opposition members asked whether the proposal had considered the special regulatory framework applicable to cotton textile mill lands under Regulation 35 of the Development Control and Promotion Regulations (DCPR) 2034.
