BMC urged to reconsider lease of Century Mill land to private developer

Azmi has urged the BMC to keep the proposal in abeyance, which will be tabled in the civic improvements committee on Friday

MUMBAI: Congress group leader in the Brihanmumbai Municipal Corporation (BMC), Ashraf Azmi, has opposed the civic body’s proposal to lease the 6.17-acre Century Mill land in Lower Parel to Peddar Realty Limited for 30 years, with a possible extension of another 30 years.

Mumbai, India - April 7, 2025:Century Staff Quarters (Bawan Chawl) at Worli in Mumbai, India, on Monday, April 7, 2025. (Photo by Anshuman Poyrekar/ Hindustan Times) (Hindustan Times)

Azmi has urged the BMC to keep the proposal in abeyance, which will be tabled in the civic improvements committee on Friday. He argues that the strategically located municipal asset should be used to secure public housing, rehabilitate existing occupants and create long-term public value instead of being handed over for private development.

The objection comes months after the Supreme Court, in a January 7, 2025 judgment, settled the principal ownership dispute over the property in favour of the BMC. The original lease had expired on March 31, 1955, and the dispute continued for nearly seven decades.

Azmi questioned whether the proposal has adequately considered the special regulatory framework applicable to cotton textile mill lands under Regulation 35 of the Development Control and Promotion Regulations (DCPR) 2034. For plots up to five hectares, 16.5% is earmarked for public open space, another 16.5% for MHADA, public or mill-worker housing, while 67% is available for development by the owner, subject to regulatory conditions.

A key concern is the rehabilitation of existing Century Mill occupants. Azmi argues that residents currently living on the property should not be displaced to create a private developer’s sale component. The proposal reportedly provides around 405 sq ft as a rehabilitation area for eligible occupants.

The Congress leader has sought the rehabilitation plan specifying the number of eligible residential and commercial occupants, the proposed rehabilitation building, permanent carpet area, tenure, transit accommodation and safeguards against delays. He has also urged the BMC to examine on-site rehabilitation wherever legally and technically feasible.

Azmi has also sought disclosure of the FSI calculation, including rehabilitation and free-sale built-up area, incentive FSI, non-residential development, premiums and development charges.

The 6.17-acre parcel measures roughly 2.69 lakh sq ft. A preliminary 4.00 FSI calculation could generate around 10.75 lakh sq ft of built-up area before statutory exclusions. Against this development potential, Azmi has questioned whether the proposed consideration of around ₹1,351 crore adequately captures the property’s long-term economic value.