48-Acre Chunabhatti Mill Land Set for Development After HC Ruling

Chunabhatti's 48-Acre Swadeshi Mills Site Moves Forward

One of Mumbai's large former textile mill properties could finally move towards development after the Bombay High Court cleared the revival of Swadeshi Mills Company Ltd.

The ruling concerns approximately 48 acres of land at Chunabhatti, an asset that has remained entangled in liquidation and legal proceedings for more than two decades.

Swadeshi Mills, established by Jamsetji Tata in 1890, once employed nearly 3,000 workers before financial problems eventually led to its winding-up in September 2005.

Why the Land Could Not Be Developed Earlier

Grand View Estates, a Shapoorji Pallonji Group company, and Forbes & Company together hold a majority 53.25% stakein Swadeshi Mills.

They sought to revive the company through a proposal that included settling workers' dues and developing the company's land.

However, minority shareholders opposed the proposal and argued that the company should instead be liquidated and its assets sold through public auction.

A single judge sided against the revival proposal in February 2026, finding that the plan appeared aimed at obtaining the 48-acre property for redevelopment rather than genuinely restarting the textile business.

That decision has now been overturned by the division bench.

What Changes After the HC Ruling?

The latest judgment removes a major legal barrier to the revival proposal and consequently opens the path towards eventual development of the Chunabhatti land.

The court also focused heavily on the interests of 2,834 mill workers, noting the financial hardship and prolonged wait they have faced.

Importantly, the judgment does not itself tell us exactly what will ultimately be built across the 48 acres. The specific development mix, configuration, approvals and timelines will depend on the development proposal and applicable planning regulations.

MHADA records separately show that Swadeshi Mill land has historically been subject to mill-land provisions governing allocations for public and mill-worker housing, underscoring that redevelopment of such sites involves planning obligations beyond the private development component.

Sandeep Sadh’s Take:

“Chunabhatti sits at an interesting junction between central Mumbai and the eastern suburbs. Unlocking a 48-acre parcel could have a substantial long-term impact on the micro-market, but the eventual development plan and regulatory obligations will determine its real scale and character.”