RBI Acquires Prime Nariman Point Land from MMRC for ₹3471 Crore
The Reserve Bank of India (RBI) has completed a significant real estate transaction by acquiring a 16,842 sq.m plot at Nariman Point from the Mumbai Metro Rail Corporation Ltd. (MMRC) for ₹3471 crore. This deal is part of MMRC's strategy to raise funds for the ongoing Metro Line 3 project.
Real EstateMumbaiRbiMmrcMetro Line 3Real Estate MaharashtraSep 11, 2025
According to MMRC, the deal is one of the largest real estate transactions in recent times. The purchased land, a 0.416-acre vacant plot, is located in South Mumbai’s prime business district. The transaction was registered on September 5, 2025, attracting a stamp duty of ₹208 crore, as per data from CRE Matrix, a real estate data analytics firm.
The Government of India's approval for the Metro-3 project required MMRC to raise ₹1000 crore from real estate sources to fund capital works. To meet this obligation, the Government of Maharashtra allocated plot numbers 1987 and 1988, totaling 16,842 sq.m, at Nariman Point. MMRC initiated the sale process and published advertisements, but RBI approached MMRC for a direct purchase, intending to set up a new office building. The necessary approvals for the Govt.-to-Govt. transaction were obtained, and the final price was negotiated.
The deal marks a significant step in MMRC's asset monetization strategy. The metro corporation has been actively exploring ways to generate additional revenue through leasing commercial spaces and land parcels. The land bid was first invited last year but had to be extended due to a tepid market response. It was later extended until December 30, 2024, but bid submissions were delayed due to market conditions.
Meanwhile, the Mumbai Metro Rail Corporation (MMRC) continues to make progress on its flagship Colaba–Bandra–SEEPZ Metro Line 3. After nearly seven years of construction delays, Phase 1 between Aarey and Bandra Kurla Complex (BKC) was commissioned, followed by Phase 2 up to Worli. The final stretch of the underground corridor is still awaited for public opening. The final phase is currently awaiting a Fire No Objection Certificate (NOC) and will only be operational after the Commissioner of Metro Rail Safety (CMRS) inspection. The deadline for opening the entire line in August 2025 was missed due to these pending clearances.
This transaction not only highlights the strategic importance of Nariman Point in Mumbai’s real estate market but also underscores MMRC’s commitment to completing the Metro Line 3 project, which is crucial for the city’s transportation infrastructure.
Frequently Asked Questions
What is the total cost of the land acquisition by RBI from MMRC?
The total cost of the land acquisition by RBI from MMRC is ₹3471 crore, which includes ₹2,871 crore for freehold ownership rights and ₹600.82 crore for exemption from providing a rehabilitation area.
Why did MMRC need to raise funds from real estate sources?
MMRC needed to raise ₹1000 crore from real estate sources to fund capital works as per the Government of India's approval for the Metro-3 project.
What is the significance of the Nariman Point plot in the real estate market?
The Nariman Point plot is located in South Mumbai’s prime business district and is one of the largest real estate transactions in recent times, attracting a stamp duty of ₹208 crore.
What is the current status of the Metro Line 3 project?
The Metro Line 3 project is making progress, with Phase 1 between Aarey and Bandra Kurla Complex (BKC) and Phase 2 up to Worli already commissioned. The final stretch is awaiting a Fire No Objection Certificate (NOC) and CMRS inspection.
Why was the land bid process extended by MMRC?
The land bid process was extended due to a tepid market response and was later extended until December 30, 2024, with bid submissions delayed due to market conditions.
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