BMC’s ₹1,351 crore Century Mill land lease proposal heads for civic approval

A 23,822 sq m BMC-owned plot at Century Mill in Lower Parel is set to be leased to Peddar Realty for ₹1,351 crore under a 30-year public-private partnership arrangement, with a possible further 30-year extension.

The redevelopment plan includes a high-rise residential complex and permanent rehabilitation flats of about 405 sq ft for 476 eligible former mill-worker families. Century Mills shut in December 2006, and the families have waited nearly two decades for permanent housing.

The Improvement Committee has cleared the proposal, which is expected to be placed before the BMC’s general body next week. The plot was first leased to Century Spinning and Manufacturing Ltd in 1927; after the lease expired in 1955, a long legal dispute followed. The Supreme Court affirmed BMC ownership of the land in January 2025.

Congress leader Azmi has written to Municipal Commissioner Ashwini Bhide and Mayor Ritu Tawde seeking a review before development rights or possession are handed over. He estimates the site could support about 13 lakh sq ft at 5 FSI and have a gross development value of around ₹13,000 crore. He has also sought details of temporary accommodation, the permanent-housing layout, tenure, completion deadlines and safeguards if the developer delays or defaults.

Shiv Sena (UBT) has also opposed the proposal.