Mumbai: In one of the biggest land deals in the city, the Reserve Bank of India (RBI) has signed an agreement with Mumbai Metro Rail Corporation Ltd (MMRCL) to acquire a 4.2 acre or 16,832 sq m plot at Nariman Point for Rs 3,472 crore to build its new office complex.Earlier, in 2023, Wadia Group entity Bombay Dyeing and Manufacturing Company sold its 22-acre land parcel in Worli to Goisu Realty, a subsidiary of Japanese realty developer Sumitomo for Rs 5,200 crore. MMRCL sources said the sale deed for the Nariman Point plot was formally registered on Sept 5, paving the way for the central bank to build its new office complex in the city’s most premium business district. According to a real estate expert, the deal was 50% higher compared to the prevailing estimated market rate in Nariman Point.The land offers a buildable area of 16 lakh sq ft, including 1.13 lakh sq ft earmarked for rehabilitation. It is among the last large tracts available in Nariman Point, where commercial development began in the early 1970s.MMRCL had issued a request for proposal on Oct 3, 2024, seeking bids for long-term leasing of the site. The corporation had hoped to generate at least Rs 5,173 crore from the lease, with leading real estate players — including Blackstone Group, Oberoi Realty, RMZ Group, and Tata Group — showing keen interest. Knight Frank India was appointed as transaction adviser.However, the tender was withdrawn on Jan 18, 2025, after RBI expressed interest in the property. “Subsequent to RBI’s request, the MMRCL Board has sanctioned to consider the proposal appropriately, and the tender has been cancelled,” an MMRCL spokesperson confirmed at the time. Sources indicated that the compensation offered by RBI was on a par with the reserve valuation. The govt-to-govt nature of the deal ensured a smooth execution without the legal and procedural hurdles typical of open auctions.The withdrawal of the auction marks the first time in over five decades that such a prime Nariman Point plot has been pulled from open bidding. The land was regarded 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, state govt 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.
