BMC's Prime Land Auction Plans Hit Roadblocks as Government Bodies Seek Procurement

Mumbai: Eight months after the BMC (Brihanmumbai Municipal Corporation) floated tenders to auction three prime land parcels in Mumbai—located at Malabar Hill, Worli, and near Crawford Market in Fort—the fate of the proposed sale remains uncertain. The move marked the first time the civic body opted to auction its own plots, indicating a shift in its strategy to monetize real estate assets and generate long-term revenue. However, the auction process has faced multiple hurdles.

The plan to auction the Malabar Hill plot was scrapped early on following objections from BEST (Brihanmumbai Electric Supply and Transport). The land has high-tension transmission lines running through it, making it unsuitable for development. Additionally, over 60 residents from the area raised objections, pointing out that the property card of the plot classifies it as a BMC-owned space designated for a public garden.

The civic body then proceeded with plans to auction the remaining two plots. These vacant land parcels are to be leased for 30 years, with a provision for renewal for another 30 years, and are expected to bring in substantial revenue for the BMC. However, the process has hit another snag. Central Railway requested a portion of the plot near Crawford Market for free to construct a passenger outlet from CSMT via a proposed skywalk. “Since the entire plot was listed for auction, carving out a part of it may not be viable,” said a civic official.

A high-level meeting on the matter was recently held with the chief secretary, the official added. As for the Worli plot, the Reserve Bank of India (RBI) approached the BMC independently, although it did not participate in the bidding process. TOI reached out to the RBI for comments but received no response. BMC officials confirmed that while bids were received for the Worli land, the responses are still under review.

In October last year, when the tender was issued a few days before the model code of conduct for the assembly elections kicked in, Shiv Sena (UBT) leader and MLA Aaditya Thackeray opposed the auctions. He claimed that the BMC is gradually losing control of vital land resources, which could otherwise be used for public infrastructure or amenities.

The BMC's efforts to monetize its land assets are crucial for generating revenue, especially in a city where land is a premium resource. However, the objections from government bodies and residents highlight the complexities involved in such initiatives. The civic body will need to address these concerns and find a balanced approach to ensure that the auctions proceed without further delays.