The Mumbai Metro Rail Corporation (MMRCL) has put on hold its plan to lease a 4.2-acre land parcel in Nariman Point for property development. This prime plot, previously used by political parties for office spaces, was slated for monetisation through a long-term lease agreement.

An RFP (Request for Proposal) for the plot's development was floated by MMRCL on 3 October 2024. However, the corporation issued a public notice on Saturday announcing the RFP's withdrawal.

Although MMRCL officials did not disclose reasons for the decision, insiders hinted at possible "technical issues" delaying the process. The corporation is likely to reissue the RFP after addressing these concerns.

The leasing plan was expected to generate a minimum of Rs 51.73 billion, leveraging the land's prime location and significant development potential. The 4.2-acre plot offers a buildable area of 16 lakh square feet, including 1,13,500 square feet reserved for rehabilitation purposes.

Previously, the land was occupied by the offices of political parties such as Congress, the Nationalist Congress Party, and Shiv Sena. Following its vacating and refurbishment, the plot was repurposed to accommodate the Vidhan Bhavan metro station, part of the 33-km-long Colaba-Seepz Metro Line 3 project. In 2017, MMRCL received the land as compensation for scrapping commercial development on part of the Aarey Car Depot land after protests from environmental activists.

This withdrawn RFP marked the first attempt to auction a prime Nariman Point plot since the area’s development in the 1970s. The plot holds immense potential for mixed-use projects, including luxury residences, office spaces, and hospitality ventures.

Key players in the real estate sector, such as Blackstone Group, Oberoi Realty, RMZ Group, and Tata Group, had expressed interest in bidding for the lease. MMRCL had also engaged Knight Frank India as the transaction advisor for the auction.

The funds raised from the lease were intended to finance on-going metro projects and repay loans, including those from the Japan International Cooperation Agency. The RFP had further provisions to allow participation from global bidders and alternative investment funds, aiming to attract international interest.

MMRCL is expected to revisit the leasing plan once the underlying issues are resolved, potentially issuing a renewed RFP in the coming weeks.