RBI Seals ₹3,472 Crore Land Deal with MMRCL for Nariman Point Plot
The Reserve Bank of India (RBI) has signed a significant land deal with the Mumbai Metro Rail Corporation Ltd (MMRCL) to acquire a 4.2-acre plot in Nariman Point for ₹3,472 crore. This prime location will be used to construct a new office complex for the central bank.
RbiMmrclNariman PointLand DealReal EstateReal Estate MumbaiSep 10, 2025
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 However, the tender was withdrawn on January 18, 2025, after the RBI expressed interest in the property.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.
Frequently Asked Questions
What is the significance of the Nariman Point plot?
The Nariman Point plot is one of the last large tracts available in Mumbai's most premium business district, where commercial development began in the early 1970s. It holds considerable symbolic and political significance, having housed the offices of major political parties for decades.
How much did the RBI pay for the Nariman Point plot?
The RBI paid ₹3,472 crore for the 4.2-acre plot at Nariman Point.
Why was the tender for the Nariman Point plot withdrawn?
The tender was withdrawn on January 18, 2025, after the RBI expressed interest in the property. The MMRCL Board sanctioned the proposal to consider the RBI's request, and the tender was cancelled.
What are the plans for the Nariman Point plot after the RBI's acquisition?
The RBI plans to build a new office complex on the 4.2-acre plot in Nariman Point, which will serve as a strategic location for the central bank.
What was the role of Knight Frank India in this deal?
Knight Frank India was appointed as the transaction adviser for the Nariman Point plot deal, providing expertise and guidance throughout the process.
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