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A proposal to lease 23,822 square metres of land in the Century Mills' Lower Parel plot for redevelopment to Peddar Realty Ltd, the highest bidder at Rs 1,351 crore, for 30 years, will come up for final approval before the BMC improvement committee on Wednesday, August 12.
Four developers bid for the Lower Parel plot
BMC had set a reserve price of Rs 1,348 crore for the plot, and four developers, Peddar Realty, K Raheja Corp, Keystone Realtors and Shapoorji Pallonji Real Estate, had submitted their bids in March.
According to the civic body, Peddar Realty's bid of Rs 1,351 crore was 0.22 per cent more than the base price. The plot currently has 23 buildings comprising 476 tenements occupied by eligible mill workers' families, along with 10 shops.
476 mill worker families to be rehabilitated
Families of workers of the mill, which shut in 2006, will be permanently rehabilitated as part of the redevelopment.
The plot was originally leased to Century Spinning and Manufacturing Ltd, now Century Textiles & Industries Ltd, for 28 years from April 1, 1927, to house employees from the poorer class. The lease deed expired in 1955.
- Lease rent for the first 30 years: Re 1 per square metre per annum for open land, and Re 1 per square metre per annum for buildings under construction
- Lease rent for the next 30 years: renewable, based on the prevailing policy at the time
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Lease terms and Aaditya Thackeray's objection
The plot will be leased on an 'as is where is' basis, and the bidder will have to rehabilitate all eligible residents at its own cost, providing flats with a minimum carpet area of 405 square feet.
The municipal commissioner reserves the right to take back possession of the land after the expiry of the lease period and if the lease is not renewed further, the lessee will have to return peaceful possession of the land as well as the developed portion.
Meanwhile, Shiv Sena (UBT)'s Aaditya Thackeray had earlier written to the municipal commissioner, stating that BMC should not proceed with the redevelopment proposal without determining the eligibility of local residents and fulfilling their demands.
The final approval before the BMC improvement committee on August 12 will determine whether the redevelopment proposal moves forward as bid, or whether these concerns are addressed first.
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