The Reserve Bank of India (RBI) has acquired a 4.61-acre land parcel in Nariman Point, South Mumbai, from the Mumbai Metro Rail Corporation Ltd (MMRCL) for ₹3,472 crore. This deal, registered on September 5, marks one of the largest land transactions in the city and the country this year. The acquisition is strategically positioned near key government and corporate offices, including the state government's secretariat (Mantralaya) and the Bombay High Court, highlighting its long-term institutional value. The transaction also generated stamp duty revenue of over ₹208 crore.
The land offers a buildable area of 1.6 million square feet, including 113,500 square feet earmarked for rehabilitation purposes. According to a real estate expert, the deal was 50% higher compared to the prevailing estimated market rate in Nariman Point.
MMRCL had initially planned to monetize the land parcel through a global tender, issuing a request for proposal on October 3, 2024, seeking bids for a long-term lease. The corporation had hoped to generate at least ₹5,173 crore from the lease, attracting 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 advisor. However, the tender was withdrawn on January 18, 2025, after the RBI expressed interest in acquiring the property to expand its headquarters.
Sources indicated that the compensation offered by the RBI was on par with the reserve valuation. An official aware of the discussions mentioned that the RBI's offer was around 25% more than what MMRCL expected to fetch for the plot. MMRCL had anticipated earning around ₹2,000 crore from the land monetization.
The RBI's acquisition signifies a major expansion of its real estate footprint in Mumbai, where it already owns prominent properties, including its Mint Road headquarters. The newly acquired plot is expected to be developed for institutional use, strengthening the central bank's presence in the country's financial hub.
MMRCL intended to use the lease proceeds to fund metro works and repay loans, including those from the Japan International Cooperation Agency (JICA). With the RBI as the buyer, the deal ensures financial closure while securing the land's future use for a public institution. The 33.5-km metro line is being built for ₹37,276 crore, out of which ₹21,280 crore has been lent by JICA.
This acquisition marks the first time a land parcel in Nariman Point has been withdrawn from auction since the area's development as a prime commercial zone in the early 1970s. The land was previously occupied by offices of various political parties and was vacated to facilitate the construction of the Vidhan Bhavan metro station.
In other news, the RBI has invited bids to sell three bungalows in Lonavala, near Mumbai, for ₹6.55 crore. These bungalows, previously used as holiday homes for RBI staff, are located on a freehold land measuring over 3,800 sq meters.
