Mumbai: In Mumbai, where old buildings standing on prime real estate are known to get into the redevelopment maze, a structure built in 1972 has chosen a different path – reimagining its past instead of fading away.
The Panchratna building, a landmark building near the Opera House that was once the center of India’s diamond trade, through which about 90% of the country’s diamond deals passed, has now returned to its original incarnation – evidence of this is the queue of clothes drying outside the apartment windows on the upper floors. This became possible because diamond traders shifted their business from here to Bharat Diamond Bourse (BDB), Bandra Kurla Complex (BKC) and Surat, Gujarat. 121 of its 144 flats, which once served as offices for prominent diamond traders, are now home to families.
While the influx of houses, which were converted into offices, started in 2011 when diamond traders started moving their business to BDB, it was only recently that the building reached full occupancy. Flat buyers at that time found economic merit in leasing space for commercial use, with many opting to rent living space in the surrounding area.
Today, the real estate prices of residential and commercial locations here are in between ₹from 40,000 ₹Rs 55,000 per sq ft for space between 700 to 1200 sq ft.
Chirag Patel, a businessman who moved here eight years ago, said: “I moved to Panchratna because it offers the best view of the sea. After the building was converted from commercial to residential I decided to take advantage of the opportunity given its proximity to the most important neighbourhoods.”
Chandrika Nagaraj, who has lived here for 37 years, is happy to be surrounded by many neighbours, unlike the times when it became a commercial hub. “The building has the best view of the sea. People like to come here as schools, colleges, hospitals and even the railway station are nearby. Even after the diamond market shifted to BKC, the building continues to have tight security,” Nagaraj said.
creating a commercial hub
Built 54 years ago, the 25-storey Pancharatna was envisioned as a part-commercial, part-residential centre. Keeping in mind the growing diamond trade in the city, six floors from the ground floor were designed for commerce, which at that time was being conducted mainly from the congested Dhanaji Street in Kalbadevi (about 3 kilometers from the Opera House). Considering the seventh floor as a shelter area, 144 flats were built in the upper 18 floors. The building was designed in such a way that the residential spaces faced the Arabian Sea, commanding a grand view of the Queen’s Necklace, Malabar Hill and Nariman Point, while the commercial spaces overlooked the busy streets outside.
However, within about three years of its completion the diamond trade boomed and most of the residential apartments in Panchratna were converted into offices by diamond traders and others associated with the trade, making it one of the most expensive commercial locations in Asia at that time.
In 2002, the Brihanmumbai Municipal Corporation (BMC) officially recognized the change in view of the demand for space and the Diamond Hub status, and the Standing Committee passed a resolution allowing Pancharatna to convert its residential floors to commercial tenants.
“Each flat was converted into three commercial units in 2002, leaving only 10 residential flats. However, today, the commercial properties have again been converted into residential and 121 families are occupying flats on the upper floors,” said Naresh Mehta, secretary of Pancharatna Co-operative Housing Society.
The 25-storey tower became the center of Mumbai’s diamond trade in the early 80s, and within a short time, the market expanded into 10 adjacent buildings in the area, including Prasad Chambers, Modi Chambers and Parikh Chambers, with around 4,500 stores. Traders from abroad, especially Belgium and Israel, were often seen in small shops along the causeway.
Since almost all the safes were kept in the Pancharatna, merchants from all over the area would return to the building in the evening to keep the precious stones safe. About 60% of the world’s diamond processing passed through the opera house. According to estimates by business leaders, at its peak the building generated an annual turnover of more than Rs 20 lakh. ₹5,000 crores.
“During the glorious period, we installed 386 CCTV cameras for round-the-clock surveillance and deployed 32 security guards in the building as it recorded between 10,000 and 12,000 footfall every day. Today, the number is less than half and the building still sees around 4,000 visitors every day, especially in the offices on the first six floors,” Mehta said.
According to the Commerce Ministry, in 2010-11, India imported 150 million carats of rough diamonds and exported 59.9 million cut and polished diamonds worth $18.24 billion, with about 90 per cent of the deals concluded in the Opera House area – where diamond traders, graders and dealers felt safe despite the area always being crowded.
One dealer said, “The crowd provided anonymity to the dealers who joined the crowd, wrapped the precious stones in tissue paper and kept them in their pockets and safely carried the diamonds off the streets.”
However, the excitement began to fade after July 13, 2011, when a powerful improvised explosive device exploded in the lane between Pancharatna Bhawan and Prasad Chambers at around 6.55 pm that day, killing and injuring several people. It was part of one of three coordinated bombings; The other two were at Zaveri Bazaar (10 minutes before the Pancharatna blast) and the other near Kaburtarkhan in Dadar (10 minutes after). Overall, 27 people lost their lives and 127 were injured in the three blasts.
“Everything changed after the 13/7 bombings,” Mehta said. “After the bomb blasts, the diamond trade started moving from the Opera House area to BDB, which had been standing ready since October 2010.”
Spread over 20 million square feet and shaped like a diamond, the BDB has 2,500 offices and an ultra-modern security setup with armed guards, a facility that was absent in the Opera House area, where traders had to take their diamonds to the Pancharatna safes every evening for safekeeping. Furthermore, BDB provided a complete eco-system for traders – apart from trading, there were also opportunities for grading, banks and dealers.
The timeless charm of Panchratna
Rajan Parikh, vice-president of the Mumbai Diamond Merchants Association, said that although traders were nostalgic about the Opera House area, they felt it was necessary to move forward with the times – given the facilities offered by the BDB it was the destination. “Large area availability, modern security systems, avenues to promote individual businesses, banks and travel agents – everything is available under one roof,” Parikh said.
“Pancharatna, however, still holds a special place in our minds – given the proximity to Charni Road station, we fondly look back at the food we get here, the ambiance of South Mumbai and the connectivity to the suburbs. We all made money and developed our businesses there,” Parikh said, adding that many diamond traders still maintain small office spaces in Panchratna even after shifting their main business operations to the BDB.
Mehta said: “The building was far ahead of its time – planned for the future. The commercial floors were centrally air-conditioned and had 12 modern lifts – six for the first six floors that face the lane and the remaining six for the upper 18 residential floors.”
Kirit Bhansali, chairman of the Gem and Jewelery Export Promotion Council (GJEPC), agreed. “The winning fact was that since most of us lived in South Mumbai, we got freshly cooked lunch from our homes, while some elderly people went home for lunch. The Opera House area also provided some great food options,” Bhansali said, adding that after moving to BKC, “most of us miss the food shops in the Opera House”.
Another proud owner of commercial space is Popley & Sons Jewellers. “We have had a commercial space in the building since 1978 and have been operating from there,” said Rajeev Popley, director of Popley Group of Jewellers. “This area is special despite most of the market shifting to BKC and Surat markets. We never thought of moving out of the building. Besides, the area is well connected to other parts of the city,” he said.
