Bombay Dyeing is yet to hand over a land parcel to the Brihanmumbai Municipal Corporation (BMC) and the Maharashtra Housing and Area Development Authority (MHADA).

The company was supposed to give 64,654 sq mtrs of prime land worth about Rs 1,058 crore to BMC and the MHADA. The deadline for the handover, ordered by the Supreme Court, ended on 8 February 2013. Of the total land parcel to be handed back, MHADA’s and BMC’s shares work out to 32,326.53 sq mtrs each.

The company's projects coming up on its erstwhile mill plots are at Spring Mills in Dadar-Naigaon and another in Lower Parel for residential-cum-commercial and retail use in Mumbai. Of this 26,556.01 sq mtrs is at Spring Mills and 5,770.52 sq mtrs at Lower Parel.

In 2012, the Supreme Court upheld a Bombay High Court order that had asked the textile company to hand over one-third of its mill land each at Dadar-Naigaon and Lower Parel to the BMC and the MHADA for development of open spaces, transit camp accommodation and houses for mill workers under the mill land redevelopment scheme and Development Control Rules 58 (DCR). This policy mandates that mill land be divided into three parts, with one-third going to BMC for open spaces, one-third to the MHADA for low-cost housing and the remaining third to the owner for construction activity. The apex court had given the company management six months to give up the land.