Mumbai: Eleven months after Supreme Court set aside a March 2022 judgment of Bombay high court and ruled that nearly six acres of Century Cotton Textile Mill land at a prime location in Worli belonged entirely to BMC, the civic body has moved to monetise the property. The BMC has floated a tender to auction the plot of land for a 30-year lease — renewable once for another 30 years — through private participation. The base price has been set at Rs 1,348 crore, with development permitted under Development Control & Promotion Regulations (DCPR- 2034) norms. “The base price has been set considering that the plot will have to be developed holistically as it houses over 400 tenants at present,” a BMC official said. “In June, a table survey, akin to a police panchnama, was conducted by our staff to record the ground reality of the land parcel, capturing details such as number of structures, encroachments, obstructions, and even tree cover.” BMC’s tender states that bidders must pay 30% of the total bid amount within one month of receiving the letter of acceptance (LoA). The remaining 70% must be paid within two years of the LoA, with interest at 12% per year charged on any amount pending after the first year, as per the Estate Policy. If the bidder fails to pay the initial 30% within one month, or within two months if an extension is granted by the municipal chief, the offer will be cancelled and the earnest money deposit (EMD) forfeited. Similarly, if the remaining 70% is not paid within the deadline, the entire EMD and the 25% already paid will be forfeited, in addition to the authority retaining the right to recover any further losses caused by the bidder’s default.The SC order this Jan paved the way for BMC to take possession of the land, which was leased in 1927 to Century Spinning and Manufacturing Co (now Aditya Birla Group-controlled Century Textiles and Industries Ltd) for 28 years at a yearly rent of Re 1, though no step was taken to take it back after the lease expired.In 2007, the company issued a legal notice requiring BMC to execute the conveyance deed to get title and ownership of land in its favour. It also approached HC, which allowed its plea in March 2022 and directed BMC to execute the conveyance in eight weeks. The company claimed the lease conferred a right to conveyance in its favour. BMC then went in appeal against the HC decision.
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