The Maharashtra government has approved the allocation of a 7,658.33 square metre plot in Sion to the Vishwa Hindu Parishad (VHP) for 30 years, charging an annual rent of Rs 10,186 and a one-time premium of Rs 9.72 crore.
The urban development department, headed by Deputy Chief Minister Eknath Shinde, cleared the proposal on December 4, following a submission by the Brihanmumbai Municipal Corporation’s improvements department in October. The land, located in F/North ward and owned by the BMC, has been converted from leasehold to makta (occupancy) tenure under Section 92 (DD) of the Mumbai Municipal Corporation Act, 1888.
The plot, measuring approximately two acres, is designated strictly for medical and educational purposes as per the Development Control and Promotion Regulations, 2034. Official occupancy will commence from June 25, 2025, when the civic body initially granted its approval for the 30-year period.
VHP spokesperson Shriraj Nair clarified that the organisation has been operating on this plot for decades. “This plot has been part of our operations since 1984, during the time of a Congress government. Previously, it was on lease, but with the current renewal, the government will now receive revenue that it did not before. It is important to note that this is an existing facility; it is not a new allotment,” Nair told reporters.
He explained that the organisation runs the Shiv Kalyan Kendra at the site, which primarily accommodates cancer patients visiting Mumbai for treatment. The facility also conducts stitching classes, computer and karate classes, and houses a goshala.
The one-time premium of Rs 9,72,56,500 has been calculated at 25 per cent of the usual rate applicable to such long-term occupancy. The civic body will determine the payment schedule for both the annual rent and the premium. Market rates in Sion currently range between Rs 30,000 and Rs 37,000 per square foot, which places the estimated market value of the plot at approximately Rs 247 crore.
BMC Commissioner Bhushan Gagrani confirmed the development but declined to comment further until he had reviewed the complete terms and conditions of the approval.
The allocation has drawn sharp criticism from the opposition. City Congress chief and MP Varsha Gaikwad condemned the decision as arbitrary, alleging it was made to benefit organisations close to the BJP just weeks before the BMC elections.
“First, slum land was given to govt’s favourite builders, now vacant land is being given to their favourite organisations. On the one hand, BMC is auctioning plots to raise money as it is on the brink of bankruptcy, and on the other, they are allotting prime plots to their favourite organisations. This kind of allotment just before BMC polls is illegal and unethical,” Gaikwad said.
She questioned the rationale behind the allocation, pointing out that healthcare and education are mandatory functions of the BMC. “VHP has no experience in healthcare or hospital operations. On what grounds is this gift worth crores being given?” she asked, adding that it was shocking Shinde had approved the allotment under instructions from the BJP.
Section 92 (DD) of the Mumbai Municipal Corporation Act, introduced through a 2017 amendment, grants the municipal commissioner special powers to lease municipal land for public projects such as memorials at concessional rates, overriding standard land disposal rules when deemed necessary for civic development and public benefit.
The government resolution makes the BMC commissioner responsible for ensuring that the land is used strictly as permitted and that all reservation conditions are followed.
