Deal Highlights

Location & Size: The plot, spanning approximately 4.6 acres (16,832 sq. metres), is situated in Mumbai’s Nariman Point, one of India’s most premium business districts.

Transaction Value: The deal has been finalised at ₹3,472 crore, significantly higher than prevailing market benchmarks in the area.

Buildable Potential: The land carries a buildable area of nearly 16 lakh sq. ft., out of which 1.13 lakh sq. ft. has been earmarked for rehabilitation purposes.

Future Use: RBI plans to construct a new office complex on the site, enabling consolidation of its offices currently housed in rented premises across the city.

Background

MMRCL had initially floated a public tender in October 2024 to lease the land for 99 years, with expectations of raising around ₹5,000 crore. However, the tender process was scrapped in January 2025 after RBI expressed interest in an outright purchase.

The land itself holds symbolic value. It previously housed offices of major political parties, including the Congress, NCP, and Shiv Sena, before being cleared for the Metro Line 3 (Vidhan Bhavan station) development.

Significance

For the RBI, the acquisition ensures a permanent and strategic presence in Mumbai’s central business district, while reducing long-term rental dependencies.

For MMRCL, the proceeds will provide crucial funding support for the ongoing Metro Line 3 project, loan repayments, and other infrastructure commitments.

What Lies Ahead

In the upcoming months, the RBI is anticipated to start organising the layout and construction of its new office complex.  MMRCL will utilise the funds to enhance Mumbai's metro infrastructure in the interim.

This deal not only underlines RBI’s long-term presence in Nariman Point but also sets a fresh benchmark for institutional land values in South Mumbai.