Mumbai's Real-Estate Infrastructure Complex: A Growing Concern
In recent years, Mumbai has seen a surge in the monetisation of public lands, raising concerns among civil society groups and urban researchers. This article explores the systemic issues behind this trend and its implications for the city's future.
Land MonetisationRealestatePublic LandUrban DevelopmentMumbaiReal EstateOct 02, 2025
Authorities are in a great rush to sell every piece of “family silver.” Despite the commissioner’s reassurances, the BEST has appointed an international consultant to advise on the “optimum utilisation” of bus depots for “non-fare revenue collection.” Recently, MSRDC handed over reclaimed public plots in Bandra for commercial exploitation. The BMC leased 53 hectares of reclaimed coastal road land to a private firm and also gave away public land in various locations for the Dharavi redevelopment project.
The Mumbai Port Trust (MbPT) initially sought to monetise the eastern waterfront in 2018 but has since decided to commercialise plots on an ad-hoc basis. Meanwhile, the housing authority MHADA has shifted from being a housebuilder to a landlord, selling premiums and capturing profits through redevelopment. The MMRDA, known for its expertise in land monetisation, is now on the lookout for new lands to exploit and has been awarded the 6.3 hectare Worli Dairy land to “generate revenue.”
Occasionally, proposals seem to border on the absurd. Last week, the Mumbai Railway Vikas Corporation (MRVC) commissioned two Japanese firms to study the feasibility of moving railway tracks from Churchgate to Mumbai Central underground, to free up land for public spaces, infrastructure, and commercial redevelopment. The proposal aims to “transform” India’s “most congested business district” but may inadvertently make it even more congested.
Civil society groups are understandably aghast. Some label this land monetisation mania as the “great Indian land sale,” while others lament that Mumbai is no longer a city but a “giant real-estate project.” The underlying issue is more systemic than individual corruption. The convergence of interests between state agencies and the real-estate industry is deeply entrenched.
In Mumbai, it is now difficult to distinguish between public and private action. Private firms are taking over public functions, while government agencies operate more like private firms. Public agencies see themselves not as stewards of public land but as asset managers and private landlords. The assumption is that public land is not for public benefit but an opportunity to capture revenue streams, which in turn fund mega-projects that create bigger revenue streams.
While mega-projects are rationalised by advertising unrealistic benefits to imagined beneficiaries, they are primarily designed to inflate land prices and service real-estate markets. Notice that the Metro cess is levied on property transactions, indicating that Metro planners understand builders as their real beneficiaries and new flat buyers as their actual customers.
The real-estate industry is the main beneficiary of public spending on large infrastructure projects. Planning authorities hand out public land and development rights as incentives to builders so that a share of development and profits can be “recaptured” from real-estate projects. When developers profit, something comes back for the public—authorities believe that public interest entails private profits.
Thus, the circle is complete: mega-projects inflate land prices, which fuels speculative building, creating some amenities and revenue for public agencies, who then monetise public land parcels to finance even more extravagant mega-projects. It is no surprise that public land in Mumbai is for sale, or that the authorities can afford Metros and freeways but find buses and basic services unaffordable.
We can describe this system as the “real-estate infrastructure complex”—an expression that highlights the close entanglement between the real-estate industry, planning agencies, and political decision-makers. This combination has an inordinate influence over Mumbai’s development policy and urban transformation. So long as “development” remains within this paradigm, the social and ecological future of the city is in grave peril. To change this, citizens will need to reinstate some fundamental but now forgotten principles of governance: that public authorities are not owners but stewards of public land; that alienating public land undermines public interest; that policy must seek to expand rather than shrink public resources; and that the aim of government agencies must be to maximise benefits for the public, not profits from land.
Frequently Asked Questions
What is the 'real-estate infrastructure complex'?
The 'real-estate infrastructure complex' refers to the close entanglement between the real-estate industry, planning agencies, and political decision-makers in Mumbai. This system prioritizes land monetisation and private profits over public interest, influencing the city's development policy and urban transformation.
Why are authorities in Mumbai selling public lands?
Authorities in Mumbai are selling public lands to generate revenue streams that fund mega-projects. They believe that by inflating land prices and capturing profits from real-estate projects, they can fund further development and public amenities.
What are the main concerns of civil society groups regarding land monetisation?
Civil society groups are concerned that the sale of public lands undermines public interest and transforms Mumbai into a 'giant real-estate project.' They fear that this trend will lead to a loss of public resources and exacerbate social and ecological issues in the city.
How does the real-estate industry benefit from public spending on infrastructure projects?
The real-estate industry benefits from public spending on infrastructure projects because these projects inflate land prices, creating opportunities for speculative building and development. Planning authorities often hand out public land and development rights as incentives to builders, ensuring that a share of the profits can be recaptured.
What principles of governance need to be reinstated to address the issues of land monetisation in Mumbai?
To address the issues of land monetisation in Mumbai, citizens need to reinstate principles of governance that emphasize public authorities as stewards of public land, the importance of preserving public resources, and the need to prioritize public benefits over private profits.
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