The Brihanmumbai Municipal Corporation (BMC) Improvement Committee will consider a proposal on August 12 to lease 23,822 sq m of land at the Century Mills plot in Lower Parel for 30 years. Peddar Realty Ltd, which emerged as the highest bidder with an offer of Rs 1,351 crore, has been selected for the redevelopment project.
The civic body had fixed a reserve price of Rs 1,348 crore for the land. Four developers — Peddar Realty, K Raheja Corp, Keystone Realtors and Shapoorji Pallonji Real Estate — participated in the bidding process held in March. Peddar Realty’s offer was Rs 1,351 crore, or 0.22% above the stipulated base price.
The plot currently contains 23 buildings accommodating 476 tenements occupied by eligible families of former mill workers, along with 10 shops. As part of the redevelopment, the eligible mill workers’ families will be permanently rehabilitated.
Century Mills ceased operations in 2006. The land was originally leased to Century Spinning and Manufacturing Ltd, now known as Century Textiles & Industries Ltd, for 28 years from April 1, 1927. The original lease was intended to provide accommodation for employees from the poorer sections. It expired in 1955.
Under the BMC’s terms, the lease rent for the initial 30-year period will be Re 1 per sq m annually for open land and Re 1 per sq m annually for buildings under construction, based on built-up area. Any renewal for the subsequent 30 years will be subject to the prevailing policy and applicable rates at that time.
The land will be leased on an ‘as is where is’ basis. The successful bidder will be responsible for rehabilitating all eligible occupants at its own expense. Each eligible family will be provided a flat with a minimum carpet area of 405 sq ft.
The municipal commissioner will retain the authority to reclaim the land after the lease expires. If the lease is not renewed, the developer will have to hand over peaceful possession of both the land and the developed premises.
Earlier, Shiv Sena (UBT) leader Aaditya Thackeray had urged the municipal commissioner not to proceed with the redevelopment without first determining the eligibility of local residents and addressing their demands.
Source: The Times of India
