SC clears sale of Mumbai mill land

The Supreme Court today rejected all objections to the sale and development of the land of sick NTC textile mills, releasing at least 150 acres in the heart of Mumbai.

It allowed the appeals of NTC and several private mills against the Bombay High Court judgment that had stalled the sale and development of their land.

The Supreme Court also clarified that the one-third division of mill land applied to only existing vacant spaces. Built-up areas are thus excluded from the land that has to be surrendered for green belts.

Nearly 60 textile mills, virtually closed down over the past two decades, own 600 acres in the heart of the metropolis. The mill owners were selling surplus land to pay workers' wages. Builders who bought land from the mill owners have raised multi-storied residential complexes and apartments have been handed over to buyers in many cases.

This was challenged by the Bombay Environment Action Group in the high court alleging that the development control rules were amended by the Maharashtra government to suit the property developers.

The high court had quashed the development plan, saying it violated the rule of sharing the open land for commercial exploitation and cheap housing. This view was overruled by the Supreme Court Bench consisting of Justice S B Sinha and Justice P P Naolekar.

The Bench held as constitutionally valid the changes in the rules for the development of the mill lands.

Reacting to today's judgment, Ness Wadia of Bombay Dyeing Realty, one of the principal movers behind the petition in the apex court, said: "Finally, the city will have access to well-planned development with good quality commercial and residential developments coming up. We will finally the see the regeneration of central Mumbai."

A spokesperson for DLF said it would now go ahead with its plans for a premium retail destination in Mumbai. The built-up area of this mall is estimated to be 1.75 million square feet. DLF had started groundwork before the court case, which it can now resume.

In its 200-page judgment, the Supreme Court observed that the environmental aspect and sustainable development must go together.

Earlier, the Supreme Court had passed interim orders allowing development projects to go ahead after getting the necessary sanctions from the appropriate authorities and at their own risk.