The Improvements Committee of the Municipal Corporation of Greater Mumbai (MCGM) on Wednesday rejected the civic body's plan to set up a five star hotel in place of the iconic 'Kismat' theatre in Prabhadevi.

Corporators of both the ruling Shiv Sena-BJP and Opposition Congress-NCP were of the view that the plot was reserved for a theatre and hence, a theatre, which would screen Marathi films, should come up at the place.

"The plot is reserved for a theatre and hence, we should not change it as the locals would be then deprived of entertainment. Instead, we should have a new theatre there which will screen Marathi films, among others," Yashodhar Phanse, chairman of the committee said.

Phanse said talks were on to build a parking lot in the space too.

"We could have a theatre at the spot below which we could have an underground parking lot."

MCGM had proposed to build a five-star hotel at the theatre as it stopped its operations in 1982.