Supreme Court Reverses Bombay HCs Order on Century Cotton Textile Mill Land in Worli

In a landmark judgment, the Supreme Court (SC) has set aside the Bombay High Court’s (HC) March 2022 decision that directed the Brihanmumbai Municipal Corporation (BMC) to transfer the title of a prime five-acre plot of land in Worli to Century Textiles and Industries Ltd, controlled by the Aditya Birla Group. This ruling allows the BMC to reclaim possession of the land, originally leased in 1927 for 28 years at a nominal rent of Re 1 per year.

Background of the Case

• Original Lease Purpose: The land was leased under the Bombay Improvement Trust Transfer Act of 1925 to provide 476 dwelling units and 10 shops for economically weaker sections.
• Lease Expiry: Although the lease expired decades ago, no action was taken to repossess the land until now.
• Company's Actions: Century Textiles submitted plans in 2009 to repurpose the land for commercial use, deviating from the original welfare-oriented purpose.

Supreme Court’s Observations

The SC bench, comprising Justices Vikram Nath and Prasanna B Varale, highlighted several critical points in their judgment:

1. Purpose of Lease: The land was explicitly intended to serve the welfare of the "poorer classes" by providing affordable housing.
2. Commercial Exploitation: The company’s attempts to use the property for commercial purposes contradicted the original lease agreement, undermining the statutory framework’s intent.
3. Public Welfare vs. Private Profit: The SC emphasized that such deviations would transform a public welfare scheme into an instrument for private gain, betraying the public trust and the legislative intent.

Key Rulings by the Supreme Court

1. No Obligation for Conveyance: The SC ruled that neither the statutory framework nor the lease terms obligated the BMC to transfer