| In what could ease the availability of real estate in Mumbai, the Supreme Court today cleared the decks for the development of seven mill land properties of the National Textile Corporation as well as those private mill lands that already possess commencement certificates issued by the Brihanmumbai Municipal Corporation (BMC). |
| As a result of the order, NTC's Kohinoor Mill No 3, Jupiter Mill, Elphinstone Mill, Mumbai Mill and Apollo Mill can start redevelopment operations. |
| In addition, NTC will hand over the Hindoostan Mills 3 and 4 as well as the New Hind Textile Mill properties to the BMC and the Maharashtra Housing and Area Development Authority. |
| The Supreme Court ruling has come as a boost to several private mill owners like the The Bombay Dyeing and Mfg Co, Hindoostan Spg & Weaving Mills, Ruby Mills and Mafatlal Industries as their development plans were put on hold by the Bombay High Court following a petition filed by the Bombay Environmental Action Group. |
| With today's order, the Supreme Court has sent the matter to the Bombay High Court for early disposal. The Supreme Court also asked the high court to decide on the development plans of other mills in Mumbai not covered by today's order, preferably by July 31. |
| It is estimated that some 60 textile mills, most of which closed down after prolonged strikes in the last two decades, own close to 600 acres in the heart of the metropolis. A large portion of this land is expected to be taken over for development by real estate developers. |
| "The Supreme Court verdict is good for the industry. This will free more land and make it available for development," said Niranjan Hiranandani of Hiranandani Construction. |
| A senior functionary of the Delhi-based DLF Group said the decision opened up new possibilities for the group, which was looking at expanding in Mumbai. "These are good land baskets and will soon be available for development," he said. |
| But real estate experts said real estate prices would not drop as the supply would still be substantially short of demand. |
| "Prices have shot up by 100 per cent in the past year. The new supply will not be able to met the entire demand," said a Delhi-based real estate consultant. |
| "There will be no impact on prices because there is too much money chasing land," added Hiranandani. |
| The case |
| April 1, 2005 Bombay High Court directs BMC to freeze development of mill land after the BEAG says construction will choke the city |
| May 11, 2005 Supreme Court lets seven NTC mills and those private mills with BMC permission to go ahead with development plans |
| July 31, 2005 Bombay High Court to pass final verdict |
Top Section
Explore Business Standard