MUMBAI: Nearly a year after the Supreme Court overturned a March 2022 Bombay High Court decision, ruling that almost six acres of Century Cotton Textile Mill land in Worli belong wholly to the BMC, the civic body is now looking to monetize the property.
The BMC has issued a tender to auction the land for a 30-year lease, which can be renewed for an additional 30 years via private participation. The starting bid is set at Rs 1,348 crore, and development will adhere to the Development Control & Promotion Regulations (DCPR-2034) guidelines.
“The base price reflects the need to develop the plot comprehensively, as it currently accommodates over 400 tenants,” a BMC official noted. “In June, our staff conducted a survey to document the land’s conditions, including structures, encroachments, and tree cover.”
Bidders are required to pay 30% of the total bid within one month of receiving the letter of acceptance (LoA). The remaining 70% is due within two years of the LoA, accruing 12% annual interest on any unpaid amounts after the first year, per the Estate Policy. Failure to pay the initial 30% within one month, or within two months if an extension is granted, will lead to the cancellation of the offer and forfeiture of the earnest money deposit (EMD). If the remaining 70% isn’t settled by the deadline, the entire EMD and 25% already paid will be forfeited, in addition to the BMC’s right to recover any further losses from the bidder’s default.
The Supreme Court’s ruling in January allowed the BMC to reclaim the land, which was originally leased in 1927 for Re 1 annually to Century Spinning and Manufacturing Co (now part of the Aditya Birla Group). No action was taken to reclaim the land post-lease expiration.
In 2007, Century Spinning demanded that the BMC execute the conveyance deed to secure title and ownership of the land. The Bombay High Court supported its claim in March 2022, ordering the BMC to execute the conveyance within eight weeks. Century contended that the lease conferred rights allowing for the conveyance. The BMC subsequently appealed the HC decision.
