Shapoorji Pallonji Firm Gets HC Relief for 48-Acre Swadeshi Mills Land

Major Chunabhatti Land Parcel Moves Closer to Development

A significant Mumbai land parcel has moved closer to development after the Bombay High Court allowed an appeal concerning the revival of Swadeshi Mills Company Ltd and its 48-acre Chunabhatti property.

The appeal was brought by Grand View Estates Pvt Ltd, part of the Shapoorji Pallonji Group, along with the Rashtriya Mill Mazdoor Sangh.

Grand View Estates and Forbes & Company together hold a 53.25% stake in Swadeshi Mills and had proposed reviving the company, settling workers' dues and developing its land.

Court Reverses February 2026 Decision

The ruling represents a significant reversal from the position taken just months ago.

In February 2026, a single-judge bench rejected the proposal, questioning whether it represented a genuine corporate revival and characterising it instead as an attempt to secure the valuable Chunabhatti land for real-estate development.

Two minority shareholders had opposed the revival and argued that Swadeshi Mills should be wound up and its properties sold through a public auction.

The division bench has now struck down the earlier order, finding that revival would not be detrimental to commercial morality or the wider public interest.

Workers Become Critical Factor

The court placed considerable emphasis on the interests of 2,834 former mill workers who have faced a prolonged wait following the company's financial collapse.

Swadeshi Mills was formally ordered to be wound up in 2005, meaning the dispute over the company and its assets has stretched across more than two decades.

The latest judgment therefore potentially unlocks not only a strategically located Mumbai landholding but also a long-pending settlement process involving thousands of workers.

For Mumbai's development market, the scale of the land is noteworthy. Contiguous sites of this size within the city are increasingly uncommon, making the future development of the Chunabhatti property one to watch.

Sandeep Sadh’s Take:

“Large contiguous land parcels within Mumbai rarely become available for development. At 48 acres, Swadeshi Mills has the potential to materially change the development landscape around Chunabhatti, depending on the eventual approvals and development plan.”