MUMBAI: Following an inquiry ordered by junior urban development minister Madhuri Misal regarding BMC’s Rs 600-crore tender for the redevelopment of its municipal testing laboratory in Worli, the civic body has launched a tender to sell a prime 5,166 sqm plot to builders for “commercial exploitation” at a starting price of Rs 455 crore. The highest bidder will have the opportunity to construct residential or commercial towers on the site.
BMC initially aimed to redevelop the laboratory and construct a new facility along with a multistory robotic parking tower and commercial units on this residentially zoned plot. However, the tender was canceled three times due to allegations of inflated costs and irregularities.
Under the new auction plan, the winning developer must not only pay a premium to BMC, but also build and deliver 1300 sqm of office space for the testing laboratory. Additionally, they are required to arrange temporary accommodations for the laboratory until the new space is ready.
According to the tender documentation, the plot will be leased at a “nominal” rent, with the possibility of extension for an additional 30 years. The document indicates that BMC will pursue the removal of the existing reservation on the plot. The permissible floor space index for the area will comply with the Development Control and Promotion Regulations-2034. “Lease rights shall be transferable with the approval of the municipal commissioner,” it noted.
Samajwadi Party MLA Rais Shaikh, who previously raised concerns over potential irregularities in the redevelopment tender, argued that the auction has a stipulation preventing anyone without a history of redeveloping at least three BMC properties in the past decade from bidding, calling it “restrictive.” “BMC has canceled the tender three times. Now, they are suddenly auctioning this plot, seemingly to benefit certain builders,” he stated.
Shaikh further criticized the process, noting that the auction was approved by then BMC chief Bhushan Gagrani just days before his retirement on March 31. “It is unethical and inappropriate to approve the auction of such a prime property right before retirement. If the plan was always to auction the plot, why cancel the previous tenders for a parking lot? This indicates a clear flip-flop in policy aimed at benefiting favored builders. The auction should be halted pending the completion of the state government’s inquiry,” he added.
Misal stated that the inquiry into the redevelopment project will be led by the additional chief secretary of the urban development department.
Acknowledging the auction plan’s approval, Gagrani defended it as consistent with BMC’s strategy to monetize land for revenue generation, asserting that there were no irregularities and that the auction had been under review for an extended period and was not a last-minute decision.
Municipal commissioner Ashwini Bhide did not respond to inquiries from TOI.
