Earlier this month, the Mumbai Metropolitan Region Development Authority (MMRDA) had decided to sell the 2,500-sq m land next to the Asian Heart Hospital at BKC to Tata Power. The price paid by Tata Power — Rs 3.44 lakh per sq m of built-up area — is the same as that quoted by Jet Airways in the last commercial deal that took place at BKC in March last year.

According to MMRDA officials, for the past 15 years the plot was rented out to Tata Power on temporary basis for housing an electric substation until the company could find an alternative site. “The piece of land was given to Tata Power at a rent of Re 1 per sq m a day, which was increased nominally over the years. Since 2000, we have been insisting that they buy the property by paying the market price like our other lessees but the company preferred to use it on rental basis. We recently decided that it is unfair that they continue to do so unless they go by the procedure and pay up the latest market rate,” said additional MMRDA commissioner Milind Mhaiskar. The plot has now been leased out to Tata Power for 80 years.

Despite the MMRDA allowing a floor space index (FSI) of four at BKC (about 10,000-sq m built-up area), the company has purchased an FSI of only one. According to a company spokesperson, the plot has been leased out to meet the growing demands of consumers and will have a receiving station along with basic office space.