R N Sharma’s paper articulates several issues that lie at the heart of the transformation of Mumbai under the neo-liberal paradigm of market-driven development. The vision of transformation of the financial capital into a ‘world-class city’ is based on the concept of urban renewal. The urban renewal programme has come to be known as enclave urbanism where land grabbing by private builders has been the norm. It has been a process of accumulation by dispossession that lies at the core of urbanization under capitalism. Following Manuel Castells, the author explores how urbanization under globalization is an expression of capitalist formation as seen in the division of the city into ‘consumers’ living in gated neighbourhoods, separated from the underprivileged other-half.