The redevelopment prospects of the 48-acre Swadeshi Mills land parcel in Chunabhatti and Sion East have come under renewed focus after the Bombay High Court rejected a revival proposal linked to the Shapoorji Pallonji Group.
On February 23, 2026, Justice Sharmila Deshmukh dismissed a revival scheme submitted by Grand View Estates Pvt Ltd, a subsidiary of the group, seeking to prevent the liquidation of Swadeshi Mills Company Ltd. The court observed that the Rs 252-crore proposal was “nothing but a ruse to obtain valuable land for exploitation in the real estate market,” rather than a genuine effort to revive the textile business.
The disputed property is considered strategically important because of its location near the Eastern Express Highway and Harbour Line. Its redevelopment potential is further enhanced by the floor space index (FSI) benefits available under Mumbai’s Textile Mills Redevelopment Scheme.
Land likely to go for public auction
Following the court’s decision, the liquidation process initiated in 2005 will continue. The Official Liquidator is expected to undertake valuation of the land before proceeding with a public auction, allowing potential developers to compete for the sizeable parcel.
The court also emphasised that revival schemes must satisfy requirements of bona fides, commercial morality and public interest.
The development could have implications for Chunabhatti’s real estate market. The locality benefits from its proximity to Chunabhatti railway station, the Sion-Panvel Highway, Bandra-Kurla Complex and South Mumbai.
A large mixed-use project on the Swadeshi Mills property could potentially bring residential, commercial, retail and hospitality development to the area. However, any future construction could also place temporary pressure on roads, public transport and civic amenities.
For prospective homebuyers, experts are likely to watch the auction process, eventual developer selection and redevelopment plans before assessing the project’s impact on property values.
The next major steps are expected to include land valuation, due diligence, auction proceedings and selection of a successful bidder. Any eventual development would also require statutory approvals and applicable registrations before construction begins.
Source: Realty Promoo
