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The City and Industrial Development Corporation (CIDCO), acting as the Special Planning Authority (SPA) for Navi Mumbai, has withdrawn the allotment of 16 plots valued at around INR 2,000 crore. The decision targets developers and buyers who failed to initiate construction despite repeated deadline extensions and official warnings. These land parcels, meant for residential and commercial use, are located in prime nodes like Airoli, Nerul, Belapur, Kharghar, and Dronagiri. With Navi Mumbai's real estate prospects on the rise, CIDCO has indicated that further cancellations may follow, particularly for leased plots lying idle. Developer interest remains strong, as reflected by Godrej Properties Ltd's recent INR 717 crore lease deal for land in Kharghar.
The City and Industrial Development Corporation (CIDCO), functioning as the Special Planning Authority (SPA) for Navi Mumbai near Mumbai, has cancelled the allotment of 16 plots, collectively valued at approximately INR 2,000 crore. This move targets developers and buyers who had failed to begin construction activities, even after being granted multiple deadline extensions and served repeated notices by the authority. Advertisement
These plots had originally been allotted for residential and commercial development purposes. However, due to the complete lack of progress on the construction front, CIDCO opted to reclaim possession of the land. The cancellations are rooted in the provisions of the Navi Mumbai Disposal of Lands (Amendment) Regulations, 2008, which govern how land is leased through auctions for residential, retail, and commercial use. Each parcel comes with a specific construction timeline and a deadline to secure an occupation certificate. In these 16 instances, the allottees did not meet the required milestones, despite being offered amnesty schemes and given ample time, prompting CIDCO to take decisive action.
The plots in question are located in prime areas of Navi Mumbai-Airoli, Nerul, Belapur, Kharghar, and Dronagiri. With the upcoming Navi Mumbai International Airport expected to bring significant infrastructure growth and economic activity, CIDCO is keen on unlocking the potential of these strategic land parcels by putting them back on the market for developers who are ready to build.
Officials have stated that the cancelled plots span over 62,000 square metres (around 6.60 lakh square feet) and are valued at nearly INR 2,000 crore. Moreover, CIDCO is actively reviewing other leased plots where no construction work has commenced. The authority hinted that additional cancellations are likely and further auctions would be conducted in the coming months.
Despite the current issues with inactive landholders, market demand in Navi Mumbai remains robust. Local brokers have reported that land prices in Kharghar range between INR 25,000 and INR 30,000 per square foot. Nevertheless, most of the land in Navi Mumbai continues to be leased from CIDCO, with limited availability of freehold parcels in the open market.
Reinforcing the growing developer interest in the region, Godrej Properties Ltd (GPL) had, during the past month, signed a lease agreement worth INR 717 crore for a 6.54-acre land parcel in Kharghar. The deal, structured over a 60-year term, underscores the strategic significance of Navi Mumbai in the broader Mumbai Metropolitan Region's property landscape.
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