The Hindu Business Line : Mill owners shaken by HC verdict

THE Bombay High Court's decision to set aside the sale of mill land on Monday has thrown a spanner in the works of a number of mill owners, mainly National Textile Corporation (NTC).

Just as the court insisting an equitable distribution of land between mill owners, city's low cost housing needs and retaining open spaces for the public dampened their plans to monetise land holdings for commercial gains, the indications are that there could well be another round of legal battle before the issue is finally settled.

The court decision has shaken NTC, as the corporation had gone ahead with the payment of workers' dues with the land sale in sight. "This is a big setback. We are not commenting on the court judgment, but essentially this will mean a huge waste of resources," said an NTC official, who wished not to be officially quoted before he could go through the order in detail.

While many mill owners, including some of their associations, refused to comment saying that they did not have enough time to study the 369-page order, Business Line managed to catch up with some others who were more forthcoming.

For Mr Chandrasekhar Prabhu, Urban Planner and Architect, who had frequently questioned the speed at which NTC called and processed tenders for the sale of mill land and how a bidding cartel was at play, was pleased with the order.

"This is perfect. It is the logical conclusion to the issue. Mumbai city was deprived of green spaces and middle class housing. Hopefully, today's court order will give back to the city what was legitimately due to it," Mr Prabhu said.

On the other hand, the mill owners were not quite as forthcoming. "It is too early for me to comment as I have not read the full order," said Mr Rajeev Piramal, Director, Morarjee Realties.

Similarly, Mr Adi Godrej, Chairman, Godrej Properties Ltd, when contacted, said he would not wish to comment without going through the full text of the court order.

The entrenched real estate players, including the likes of multinationals such as Cushman & Wakefield, seemed keen to mix the environmental angle with the monetary impact. "The decision is an important step towards providing the city with the much needed open and breathing space. Concurrently, it is expected to impact the real estate development pattern as well as pricing strategies in the short-term," said Mr Chanakya Chakravarti, Joint Managing Director, Cushman & Wakefield India.

According to Mr Niranjan Hiranandani, one of the leading builders in the city, archaic housing policy was the underlying issue. "There is a general perception that builders have a role in the high land cost. That is not true. The only way to ensure affordable housing to common man in cities like Mumbai is to totally revamp policy relating to Urban Land Ceiling and floor space index," he said.

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