The vicious circle of supply shortages and high land prices are taking the sheen out of Mumbai as the metropolis, which houses 12m people in slums and degraded apartments, has become the world's most densely populated city, the World Bank said on Thursday.

Despite the attempts to discourage inflow of people, the World Development Report 2009 said, Mumbai's population has more than doubled to 16m since 1980s.

Mumbai, the report recalled, has already slipped from 25th place to 40th in the league table of 'best cities for business' between 1995 and 1999.

Financial Express