HC Clears Development of 48-Acre Swadeshi Mills Land in Mumbai

48-Acre Mumbai Mill Land Gets Legal Clearance

The Bombay High Court has paved the way for the revival of Swadeshi Mills Company Ltd and development of its 48-acre land parcel at Chunabhatti in Mumbai, bringing a major shift in a dispute that has continued for more than two decades.

A division bench of Justices A.S. Gadkari and Kamal Khata allowed appeals filed by Grand View Estates Pvt Ltd, a Shapoorji Pallonji Group company, and the Rashtriya Mill Mazdoor Sangh (RMMS).

The appeals challenged a February 2026 single-judge order that had rejected the revival proposal and refused to stop the company's liquidation.

Why Was the Development Stuck?

Swadeshi Mills was founded by Jamsetji Tata in 1890 and was once one of Mumbai's prominent textile mills. Financial difficulties eventually pushed the company towards liquidation, and the Bombay High Court formally ordered its winding-up in September 2005.

Its assets, including the substantial Chunabhatti landholding, subsequently remained caught in liquidation and redevelopment disputes.

In February this year, a single-judge bench rejected the revival proposal, describing it as a route to gain control of the valuable 48-acre property for real-estate development rather than a genuine attempt to revive the textile company.

The latest division bench has now overturned that decision.

2,834 Mill Workers at Centre of Decision

An important consideration for the court was the position of 2,834 mill workers, who have waited for resolution for more than two decades.

The bench held that revival would benefit these workers and noted that money invested by Grand View Estates and Forbes & Company had remained in a bank account for more than 21 years awaiting disbursement.

Grand View Estates and Forbes & Company together hold 53.25% of Swadeshi Mills.

The ruling consequently removes a major legal obstacle surrounding one of Mumbai's substantial former mill land parcels.

Sandeep Sadh’s Take:

“A 48-acre land parcel becoming available for development within Mumbai is significant in itself. More importantly, this ruling could finally unlock an asset that has remained tied up for over two decades while providing long-awaited resolution for thousands of mill workers.”