RBI Seals ₹3,472 Crore Land Deal with MMRCL for Nariman Point Plot
Mumbai: In one of the most significant land deals in the city, the Reserve Bank of India (RBI) has inked an agreement with the Mumbai Metro Rail Corporation Ltd (MMRCL) to acquire a 4.2-acre plot, equivalent to 16,832 square meters, at Nariman Point for ₹3,472 crore. This strategic move will facilitate the construction of a new office complex for the RBI in the city's most premium business district.
Earlier, in 2023, the Wadia Group entity, Bombay Dyeing and Manufacturing Company, sold its 22-acre land parcel in Worli to Goisu Realty, a subsidiary of the Japanese real estate developer Sumitomo, for ₹5,200 crore. According to real estate experts, the RBI deal was 50% higher compared to the prevailing market rate in Nariman Point.
The plot offers a buildable area of 16 lakh square feet, including 1.13 lakh square feet earmarked for rehabilitation. It is one of the last large tracts available in Nariman Point, where commercial development began in the early 1970s. MMRCL had issued a Request for Proposal (RFP) on October 3, 2024, seeking bids for the long-term leasing of the site. The corporation aimed to generate at least ₹5,173 crore from the lease, attracting keen interest from leading real estate players such as Blackstone Group, Oberoi Realty, RMZ Group, and Tata Group.
Knight Frank India was appointed as the transaction adviser. However, the tender was withdrawn on January 18, 2025, after the RBI expressed interest in the property. An MMRCL spokesperson confirmed, “Subsequent to RBI's request, the MMRCL Board has sanctioned to consider the proposal appropriately, and the tender has been cancelled.” Sources indicated that the compensation offered by the RBI was on par with the reserve valuation.
The government-to-government nature of the deal ensured a smooth execution, free from the legal and procedural hurdles typical of open auctions. This marks the first time in over five decades that such a prime Nariman Point plot has been pulled from open bidding. The land was seen as a highly lucrative opportunity for mixed-use development, spanning premium office space, luxury residences, and hospitality projects.
The Nariman Point plot holds considerable symbolic and political significance. For decades, it housed the offices of Congress, NCP, and Shiv Sena. It was vacated and refurbished to accommodate the Vidhan Bhavan Metro station, part of the 33km underground Colaba–Aarey Metro Line 3 project. In 2017, the state government had allotted the land to MMRCL as compensation after shelving plans for a commercial complex at the Aarey car depot site, which faced strong opposition from environmental activists.
MMRCL had intended to channel lease proceeds into funding Metro works and repaying loans, including borrowings from the Japan International Cooperation Agency. With the RBI stepping in as the buyer, the deal ensures financial closure while anchoring the land's future use for a public institution.
