MUMBAI: In a landmark transaction, the Reserve Bank of India (RBI) has finalized an agreement with Mumbai Metro Rail Corporation Ltd (MMRCL) to acquire a 4.2-acre plot at Nariman Point for ₹3,472 crore, which will house its new office complex.
This year, the Wadia Group’s Bombay Dyeing and Manufacturing Company sold a 22-acre parcel in Worli to Goisu Realty, a subsidiary of Japanese developer Sumitomo, for ₹5,200 crore.
MMRCL representatives stated that the sale deed for the Nariman Point plot was officially registered on September 5, allowing the central bank to progress with its new office complex in one of the city’s most prestigious business districts. An industry expert noted that the deal’s price was 50% above the current market rate in the area.
The land provides a developable area of 16 lakh square feet, including 1.13 lakh square feet designated for rehabilitation. It is one of the last major tracts available in Nariman Point, where commercial activities commenced in the early 1970s.
On October 3, 2024, MMRCL had released a request for proposals for the long-term leasing of the site, anticipating to generate at least ₹5,173 crore from the lease, attracting interest from major developers like Blackstone Group, Oberoi Realty, RMZ Group, and Tata Group. Knight Frank India was designated as the transaction adviser.
However, the tender was retracted on January 18, 2025, following RBI’s expression of interest in the site. “In light of RBI’s request, MMRCL’s Board has approved to consider the proposal, leading to the cancellation of the tender,” an MMRCL spokesperson confirmed. Sources indicated that the compensation offered by RBI aligned with the reserve valuation, and the government-to-government nature of the agreement facilitated smooth execution without the typical legal and procedural complexities of open auctions.
This marks the first instance in over fifty years that such a prime plot in Nariman Point has been removed from public bidding, viewed as an excellent opportunity for mixed-use development, inclusive of premium office spaces, luxury residences, and hospitality projects.
The Nariman Point parcel carries significant symbolic and political weight, having been home to offices of Congress, NCP, and Shiv Sena for decades. It was vacated and refurbished to serve the Vidhan Bhavan Metro station, part of the 33km underground Colaba–Aarey Metro Line 3 project. In 2017, the state government allocated the land to MMRCL as compensation after canceling plans for a commercial complex at Aarey car depot, which encountered fierce opposition from environmental activists.
MMRCL planned to utilize the lease proceeds for Metro project funding and loan repayments, including debts to the Japan International Cooperation Agency. The RBI’s acquisition secures financial closure and paves the way for future public institutional use of the land.
