Industrial Land Loot: Pyarelal Textiles Turns Ambernath Plot Into 63 Parcels, MIDC Sleeps

X: @vivekbhavsar

Mumbai: Ambernath, once envisioned as one of Maharashtra’s thriving industrial hubs, is today witness to a brazen case of how public land meant for genuine industries is being converted into a private profiteering venture. The case of Pyarelal Textiles Ltd. in the Ambernath Industrial Area exposes not just the failure of one company to uphold its commitments but also the disturbing willingness of the Maharashtra Industrial Development Corporation (MIDC) to look away from glaring violations of law, policy, and contract. What was once allotted for the establishment of a textile industry is today being carved into sixty-three smaller plots for resale, while crores of rupees in dues remain unpaid and construction obligations remain unfulfilled. This is not development; this is nothing short of industrial land loot.

The story begins with the allotment of Plot No. 19/1, admeasuring 47,821 square metres, in the Ambernath Industrial Area. Originally given to M/s Tak Machinery Ltd., the plot subsequently changed hands several times — to Piramal Spinning and Weaving Mills Ltd. and then to Pyarelal Textiles Ltd., a sick unit that came under the purview of the Board for Industrial and Financial Reconstruction (BIFR), case number 984 of 2000. Despite these ownership changes, one thing remained clear: the plot was allotted for industrial use, specifically to establish a textile factory. This was not private property to be treated as a commodity; it was a public resource, allotted under specific terms and conditions of the MIDC lease.

Those terms were not vague. The documents clearly state that the allottee was required to construct at least 20 percent of the factory building, utilising the corresponding Floor Space Index (FSI), within one year from the approval of plans. A further obligation required that at least 40 percent of the FSI be utilised within two years, and production must commence. In the case of Pyarelal Textiles, the one-year deadline expired on 30 June 2024. Yet, as of today, no such construction has taken place. No factory stands on the land, no jobs have been created, and no textile production has begun. By the very letter of the lease deed, the lease should have been terminated and the land resumed by MIDC immediately after June 2024. That is not just an option; it is a contractual right MIDC has when its allottees default.

Instead, what has happened is the very opposite of what law and policy dictate. Pyarelal Textiles, without waiting for permission, has already carved out small plots from the original land and physically demarcated them on the site. Photographic evidence confirms that these plots were marked and cut out even before formal approval was granted. This amounts to nothing short of an illegal act, since no allottee has the right to subdivide an industrial plot and sell it. MIDC’s role is precisely to ensure orderly industrial development and to prevent land hoarding and speculation. Yet here, the corporation has watched silently while its very function has been usurped by a private company. And to make matters worse, on 20 January 2025, MIDC went ahead and gave formal approval to the subdivision of the plot into sixty-three parts, vide reference C-777, despite every condition being violated.

The financial side of this saga makes the violations even more glaring. On 30 August 2024, MIDC had demanded non-utilisation charges of ₹2,09,48,027.46, inclusive of GST, payable within 15 days. These charges were levied precisely because Pyarelal had failed to utilise the land for the intended purpose. To date, this amount has not been paid. Beyond this, Pyarelal owes service charges of ₹35.37 crore, which remain pending under protest. A company with outstanding dues of over ₹37 crore, including mandatory non-utilisation penalties, is being rewarded with subdivision approvals instead of being penalised with lease cancellation. That raises a fundamental question: what is MIDC’s role? Is it the custodian of Maharashtra’s industrial land bank, or is it a facilitator of private profiteering?

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The documents also record detailed obligations relating to infrastructure and environment. Pyarelal was required to develop internal roads, stormwater drains, fire hydrants, RCC chambers, and water supply at its own cost. The site is dotted with many trees, which required geo-tagging and mandatory permissions from the Forest Department for cutting or transplantation. Compensatory plantation obligations also applied. In addition, Pyarelal was bound to pay effluent treatment plant (ETP) charges, estimated at 94 percent of total infrastructure contributions, before any final permission was granted. All these conditions, while binding on paper, have been openly flouted. The company did not complete even the first step of constructing the minimum factory structure, yet it was permitted to advance to the last stage of subdividing land.

The timeline shows the regulatory lapses clearly. Approval letters dated 30 June 2023 had set the one-year and two-year deadlines for construction and commencement. By 30 June 2024, the company had defaulted, and MIDC should have exercised its right of lease termination. Instead, the file was processed, checked by multiple officers, and eventually signed off on 20 January 2025, granting the company the right to formally subdivide the land into sixty-three plots. This decision effectively allows Pyarelal to act as a mini-MIDC, selling industrial plots to other units. Even if the buyers are small industries, the core breach remains: Pyarelal was never allotted land to act as a dealer. MIDC alone has the statutory mandate to allocate land parcels directly to genuine industrial units. By abdicating that responsibility, MIDC is setting a dangerous precedent.

The implications for Maharashtra’s industrial policy are enormous. If one sick unit can default on dues, fail to build, and still walk away with profits by selling subdivided plots, why should any other allottee follow the rules? Why should genuine industries wait in line for allotment when land can be accessed through backdoor trading? This undermines not just one estate in Ambernath but the entire credibility of the state’s industrial development framework. Jobs that should have been created in textiles will never materialise. Infrastructure that should have been built will remain a paper promise. And the state will lose tax revenues and industrial growth, even as a defaulter company pockets profit.

The role of MIDC officials and the Industries Ministry cannot escape scrutiny. The file notings themselves acknowledge that dues are unpaid, construction obligations unmet, and that subdivision was physically done without permission. Yet the final outcome was not punitive but permissive. Why? Who pressured officials to sign off on such a blatant violation? Why was the legal route of termination not taken? And why was a sick unit under BIFR protection allowed to convert an industrial asset into a commercial gain? These questions strike at the very heart of governance and accountability in Maharashtra’s industrial policy.

TheNews21 raises this issue not as a partisan voice but as a watchdog committed to public interest. Maharashtra’s industrial land bank is a precious resource, created through acquisition and investment of public money. It is meant to drive factories, employment, and growth, not speculative trading. If the Pyarelal Textiles case is allowed to stand, it will open the floodgates for every large allottee to default, subdivide, and profit. MIDC will be reduced to a silent registry office, its original purpose defeated. The Chief Minister, the Industries Minister, and the MIDC administration must answer why a defaulter has been rewarded and why industrial land is being looted in broad daylight.

This case is a test for Maharashtra’s industrial governance. Will the state act to protect its land bank, or will it allow private profiteering at public expense? The watchdogs are watching, and TheNews21 will continue to expose such cases until accountability is fixed and justice delivered.