BMC approves Century Mills land lease, Mulund land for Dharavi project

MUMBAI: The civic improvements committee on Friday cleared three proposals despite earlier pushback to two of them – leasing land at the defunct Mulund dumping yard for the Dharavi redevelopment project, and changing the reservation of a Mulund plot from a sports complex to a petrol pump

MUMBAI: The civic improvements committee on Friday cleared three proposals despite earlier pushback to two of them – leasing land at the defunct Mulund dumping yard for the Dharavi redevelopment project, and changing the reservation of a Mulund plot from a sports complex to a petrol pump.

iiiMumbai, India - May 28, 2026: A Top view of the The Mulund Dumping ground at Mulund in Mumbai, India, on Thursday, May 28, 2026. (Photo by Satish Bate/ Hindustan Times) (Hindustan Times)

The third proposal, which had been questioned by the opposition Congress in the BMC, too went through – leasing the 16.7-acre Century Mills land in Lower Parel to Peddar Realty Ltd for 30 years.

The plot houses 23 buildings with 476 tenements occupied by mill workers’ families and ten shops. While redeveloping the property, the developer will be required to rehabilitate all eligible residents at its own cost, with each tenement measuring 405 sq ft.

The land was originally leased to Century Spinning and Manufacturing Ltd, now Century Textiles & Industries Ltd, in 1927 for housing employees from economically weaker sections. The lease expired in 1955. The civic body has reclaimed the plot after a lengthy legal battle.

Under the terms with Peddar Realty, the rent for the first 30 years will be ₹1 per sq m, while any subsequent 30-year renewal will attract rent based on the prevailing policy. The land will be leased on an “as is where is” basis, with the municipal commissioner retaining the right to reclaim it after the lease expires.

The second proposal cleared by the civic improvements committee on Friday was the leasing of 15 acres of land reclaimed at the defunct Mulund dumping ground for the Dharavi Redevelopment Project (DRP). The land will be leased to Navbharat Mega Developers Pvt Ltd (NMDPL), in which the Adani Group holds an 80% stake and the state government the remaining 20%.

The five-year lease was cleared despite strong opposition from Shiv Sena (UBT) and Congress members. The land will be used to establish a casting yard, a precast element manufacturing facility and a ready-mix concrete (RMC) plant required for the Dharavi redevelopment project.

Opposition members had raised concerns over the use of reclaimed dumping-ground land for construction-related activities, citing potential environmental implications. The proposal was thus sent back to the civic administration on July 25 for reconsideration. However, the committee cleared it on Friday.

The improvements committee also approved a controversial proposal to modify the Development Plan 2034 reservation of a 4,247.50-sq-m plot in Mulund east from a sports complex and stadium to a petrol pump, despite opposition from committee members and Congress corporators.

The civic administration has justified the change by citing the absence of a petrol pump in Mulund east, claiming repeated demands from residents.

The issue was first raised at a meeting with the chief minister on pending civic amenities in Mulund in April 2025. According to the proposal, the chief minister had directed officials to identify land along the Eastern Express Highway in Mulund for a petrol pump.

Congress corporator Meher Haider urged the civic body to reject the change in reservation, citing the importance of preserving land earmarked for public sports facilities but the proposal was cleared on Friday.