BMC to amalgamate Lower Parel municipal plots with SRA scheme for integrated redevelopment

The proposal was jointly submitted by developers Vrinda Enterprises Pvt Ltd and Skylark Buildcon Pvt Ltd and forwarded by the SRA to the municipal commissioner

MUMBAI: The BMC is set to amalgamate some of its land in Lower Parel with an ongoing Slum Rehabilitation Authority (SRA) scheme, paving the way for their integrated redevelopment. The plots, located around N M Joshi Marg and Pandurang Budhkar Marg, will be clubbed with the Shri Sai Sunder Nagar Co-operative Housing Society Ltd SRA and other societies, along with several other plots in Lower Parel and Mahim.

Mumbai, India. Aug 18, 2026 - View of the Sree Sai Sundar Nagar SRA building in the Prabhadevi area of Central Mumbai, India. Aug 18, 2026. (Photo by Raju Shinde/HT Photo) (Raju Shinde)

The proposal was jointly submitted by developers Vrinda Enterprises Pvt Ltd and Skylark Buildcon Pvt Ltd and forwarded by the SRA to the municipal commissioner. It was tabled at the civic improvements committee and cleared on August 13.

The proposal is based on directions issued by the urban development department on July 3 last year, which introduced provisions under Regulation 33(10) of the Development Control and Promotion Rules (DCPR). These provisions allow schemes for construction of Project Affected Persons (PAP) tenements and amenities on built-up, vacant, reserved or designated plots owned by public authorities such as the BMC. Such plots can subsequently be amalgamated with an SRA scheme in the same administrative ward.

Under the proposal, the municipal plots will be developed at the permissible FSI, with the FSI required for existing or reserved municipal facilities being used for these, and the balance being utilised for PAP housing. The PAP tenements generated from the development will be handed over to the BMC free of cost.

Several of the BMC plots are currently occupied by municipal facilities such as a municipal school, a municipal chowky, the G South Ward office and Shantabai Hule municipal market. One plot, reserved for a garden/playground, is partly occupied by slum-like structures.

The BMC has made it clear that the developer will have to reconstruct all these municipal facilities at the maximum permissible FSI under DCPR 2034 and hand them over to the civic body free of cost. The reserved garden/playground will also have to be developed and handed over to the BMC. The civic body has also stipulated that during the redevelopment period, the developer will have to make alternative arrangements at its own cost for all these facilities.

The construction cost of these municipal facilities is estimated at around ₹114.27 crore. In addition, the BMC is expected to receive a 25 per cent land premium of approximately ₹35.13 crore. The municipal housing component is estimated to translate into approximately 189 PAP tenements.

The proposal says that if the SRA permits an FSI of more than 4.0, the additional potential could be used for constructing more PAP tenements. If these additional homes are handed over to the BMC free of cost, the civic body will have no objection to granting the corresponding incentive FSI to the developer.

The proposal also seeks to ensure that the BMC retains ownership of its land. In particular, the civic body has stipulated that the plots currently housing the school, chowky and ward office, together measuring approximately 8,994.05 sq m, will continue to remain BMC property. A mutation entry reflecting BMC ownership will have to be made in the property records before an occupation certificate is given to the developer.

The BMC has also proposed that the residents of the cooperative housing society to be created through redevelopment be granted a lease over the municipal land for an initial period of 30 years. Any subsequent renewal will be subject to BMC’s discretion and the prevailing policy at that time.

Another significant condition relates to the land premium. The developer will be required to pay the applicable 25 per cent land premium, while the SRA will have to transfer the amount collected to the BMC within 30 days.

Ashraf Azmi, Congress group leader in the BMC, who had opposed the proposal, said that it had been “managed” in a particular manner to facilitate the deal for the civic body’s favoured developers. “What is the BMC getting by giving away this prime land?” he asked. “The SRA builder will benefit by creating a sale component on the site.”

Azmi added that the ownership of the land must remain with the BMC. “Once the land is handed over to the SRA, it will be gone permanently,” he said. “Our contention is that this is a loss-making deal for the BMC, and there is a huge disparity between what the BMC is going to receive and the value of the land it is handing over to the SRA. The BMC should get land equivalent in value to what it is giving away.”

A senior SRA official said, “We will do planning as per the urban development department’s directions. More stock for PAP will be generated and a well-planned layout will be created.”