RBI buys 4.2-acre land parcel from MMRCL for Rs 3,472 crore in Mumbai’s Nariman Point

The deal comes months after MMRCL first floated bids in October 2024 for a long-term lease of the land. The company was looking to collect in excess of Rs 5,000 crore through the auction, and prominent players like Blackstone Group, Oberoi Realty, RMZ Group, and Tata Group had shown interest. Knight Frank India acted as the transaction consultant.

But the auctioning process was cancelled in January 2025 when RBI showed interest in purchasing the property outright. Subsequently, it was confirmed that MMRCL’s board had approved the proposal, and the tender was revoked.

“The deal value was in line with estimates of the reserve price, which guaranteed financial closure to MMRCL without the hassles of an open bidding process,” a source associated with the deal said.

For MMRCL, the revenue from the sale is expected to be directed towards funding the Metro Line 3 works and repaying loans, including those from the Japan International Cooperation Agency (JICA).

For RBI, the deal secures a long-term site in Mumbai’s prime business district for its upcoming office complex, marking a significant shift in the use of a plot once regarded as a potential site for high-value commercial and residential projects.

The Nariman Point land has a multi-layered history. It had political party offices, including those of the Congress, Nationalist Congress Party (NCP), and the Shiv Sena, for many decades. Later, the buildings were demolished to pave the way for the Vidhan Bhavan Metro Station as part of the 33 km-long underground Colaba-Aarey Metro Line 3 project.

The state government transferred the land to MMRCL in 2017 following the cancellation of a commercial complex plan at the Aarey car depot, which had been opposed by green groups.