BMC Shifts Strategy, Auctions Prime Worli Land for Commercial Development
In a significant policy reversal, the Brihanmumbai Municipal Corporation (BMC) has initiated an auction for a prime 5,166-square-meter plot in Worli, Mumbai, setting a base price of Rs 455 crore. This move comes weeks after junior urban development minister Madhuri Misal ordered an inquiry into the civic body's previously scrapped Rs 600-crore tender for redeveloping its municipal testing laboratory on the same site.
From Lab Redevelopment to Commercial Auction
The BMC had originally planned to redevelop the existing laboratory and construct a new facility, along with a multistorey robotic parking tower and commercial units, on this plot located in a residential zone. However, the tender for this project was cancelled three times due to allegations of undue cost escalation and procedural irregularities, prompting the state-level investigation.
Under the new auction plan, the highest bidder will be granted the right to develop residential or commercial towers on the land. In addition to paying the premium to the BMC, the selected developer must construct and hand over 1,300 square meters of office space to the BMC for its testing laboratory. The developer is also required to make temporary arrangements for the laboratory until the new space is operational.
Lease Terms and Development Regulations
According to the tender documents, the plot will be leased out at a nominal rent, with an option to extend the lease by another 30 years. The BMC has committed to processing the deletion of the existing reservation on the plot. The permissible Floor Space Index (FSI) will adhere to the Development Control and Promotion Regulations-2034, and lease rights are transferable with the approval of the municipal commissioner.
Political Criticism and Allegations of Favoritism
Samajwadi Party MLA Rais Shaikh, who raised the issue of irregularities in the assembly last month, has criticized the auction as restrictive. He pointed out that the tender includes a condition allowing only those who have redeveloped at least three BMC properties in the last decade to bid, potentially limiting competition.
Shaikh alleged that the BMC's sudden shift to auctioning the plot, after cancelling the redevelopment tender three times, appears designed to favor specific builders. He highlighted that the auction file was approved by then BMC chief Bhushan Gagrani just days before his retirement on March 31, calling this timing unethical and improper. Shaikh has demanded an immediate stay on the auction until the state government's inquiry is completed.
Official Responses and Justifications
In response, Bhushan Gagrani, the former BMC chief, acknowledged approving the auction plan, stating it aligns with the BMC's policy to monetize plots for revenue generation. He denied any irregularities, emphasizing that the auction had been under consideration for an extended period and was not a last-minute decision. Municipal commissioner Ashwini Bhide did not respond to queries regarding the matter.
The inquiry into the initial redevelopment project, ordered by Minister Madhuri Misal, will be conducted by the additional chief secretary of the urban development department, adding a layer of scrutiny to the BMC's actions.
