RBI Acquires 4.2-Acre Nariman Point Land from MMRCL for Rs 3,472 Crore
The Reserve Bank of India (RBI) has acquired a 4.2-acre land parcel at Nariman Point from the Mumbai Metro Rail Corporation Ltd (MMRCL) for Rs 3,472 crore. This transaction marks one of the largest institutional land deals in Mumbai’s business hub.
RbiMmrclNariman PointLand DealMumbaiReal Estate MumbaiSep 12, 2025
The land parcel, measuring 16,832 square metres, provides a buildable area of 16 lakh sq ft, of which 1.13 lakh sq ft is reserved for rehabilitation. It is among the last large plots available for development in Nariman Point, the business hub that has been at the centre of Mumbai’s commercial activity since the 1970s.
“RBI paid a consideration of Rs 2,871 crore towards freehold ownership rights of land and an additional amount of Rs 600.82 crore towards exemption from providing rehabilitation area,” MMRCL said in a statement. According to MMRCL officials, the final price for the transaction was arrived at through negotiation.
The deal comes months after MMRCL first floated bids in July 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 Subsequently, it was confirmed that MMRCL’s board had approved the proposal, and the tender was revoked. However, RBI approached MMRCL for a direct purchase with the intention of setting up their new office building.
“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.
As per a Government of India approval for the Metro-3 project, MMRCL is required to raise Rs 1,000 crore from real estate sources towards capital works. 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.
Frequently Asked Questions
What is the significance of the land deal between RBI and MMRCL?
The land deal is significant as it marks one of the largest institutional land transactions in Mumbai, securing a prime location for RBI's new office complex and providing MMRCL with funds for the Metro Line 3 project.
How much did RBI pay for the 4.2-acre land parcel?
RBI paid Rs 3,472 crore for the 4.2-acre land parcel, which includes Rs 2,871 crore for freehold ownership rights and Rs 600.82 crore for exemption from providing rehabilitation area.
What is the buildable area of the land parcel?
The buildable area of the land parcel is 16 lakh sq ft, with 1.13 lakh sq ft reserved for rehabilitation.
What was the initial plan for the land before RBI's purchase?
The initial plan for the land was to lease it out for a long-term lease, with MMRCL aiming to collect over Rs 5,000 crore through an auction. However, the auction was cancelled when RBI expressed interest in purchasing the property outright.
How will the revenue from the sale be used by MMRCL?
The revenue from the sale will be directed towards funding the Metro Line 3 works and repaying loans, including those from the Japan International Cooperation Agency (JICA).
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