Mafatlal's bid to sell land in Mumbai likely to face hurdle | business | Hindustan Times
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Mafatlal's bid to sell land in Mumbai likely to face hurdle

business Updated: Oct 17, 2010 12:45 IST
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Mafatlal Industries' bid to sell a 7-acre land-parcel in Byculla in central Mumbai could face a hurdle as the city's Collector is firm about not granting his permission for the sale.

"The company cannot sell the land without our permission. The land belongs to the state government and a decision in this regard will be taken by the Revenue Department. The company has no right to finalise any deal without our approval," the city's Collector, C V Oak, said in Mumbai.

The Arvind Mafatlal group company, had, last week, said that though it had not reached any final decision on the sale of its land to any party, it was in "talks with a few bidders in this regard."

The seven acre land is a part of a 14.5 acre land-parcel which was leased in 1913 to Sassoon Spinning & Weaving Company (now Mafatlal Industries) for 99 years. The lease expires in August 2012.

"The company can apply for an extension of the lease period but it is up to the government to decide on this. Even if the lease period is extended, the company will not have the right to sell the land as per rules. However, the renewal might also come with some more clauses," Oak said.

According to reports, realty major, the Lodha group, and others such as Peninsula Land and Kanakia, are in the fray to purchase the land.

Mafatlal Industries is engaged in the business of chemicals and textiles, including denim.