BMC retains ownership of Lower Parel plot worth ₹660 cr
SC overturns Bombay HC ruling, reaffirms BMC's ownership of land meant for welfare, not commercial use, valued at ₹660 crore. Mill workers reside there.
Intro: SC says the property was meant for a welfare scheme, not commercial gain
MUMBAI: The Supreme Court has overturned a Bombay High Court verdict, which had directed the Brihanmumbai Municipal Corporation (BMC) to transfer five acres of land in Lower Parel to Century Textiles and Industries Limited (now Aditya Birla Real Estate Limited). The judgement, which has upheld the BMC’s ownership of the land, was critical of the private firm for allegedly attempting to convert the property, allocated under a welfare scheme, into a vehicle for commercial gain.
According to Ready Reckoner rates for 2024-2025, the property is valued at ₹660 crore, said the BMC in a statement. Following the ruling by the apex court, BMC officials conducted an inspection of the site on Thursday morning. There are mill workers currently housed on the property.
The land, originally allotted to Century Spinning and Manufacturing Limited (later Century Textiles and Industries Limited) on April 1, 1927, was intended to house workers for 28 years. The lease agreement, dated October 3, 1928, included the land and the construction of 476 rooms, 10 shops and a chawl near the mill. The lease expired on March 31, 1955 and ownership of the property was to revert to the BMC.
However, instead of returning the land, Century Textiles filed a petition in the Bombay High Court in 2017, seeking to transfer ownership of the land to its name. The BMC contested this claim. On March 14, 2022, the high court ruled in favour of Century Textiles.
The BMC’s Estates Department filed a special leave petition in the Supreme Court on May 13, 2022. The Supreme Court stayed the high court order on July 13, 2022, and after further hearings, it delivered its judgment on January 7, 2025.
While delivering their verdict, a bench comprising Justices Vikram Nath and Prasanna B Varale held that the civic body was neither legally obligated to convey the land nor at fault for not executing the deed.
A civic official from the BMC’s Estate Department told HT, “We are seeking opinion from legal counsel and, along with the municipal commissioner, will take a decision on how the land can be utilised. Century Textiles had claimed that after 30 years, the land would automatically get conveyed to them. But it was meant to be returned to the BMC.”
The civic official said there were mill workers living on the land, which is to be developed under Regulation 35 of the Development Control and Promotions Rules (DCPR), which relates to development of cotton textile mill workers.
