NABARD buys leasehold rights for a commercial complex from MTNL for a 2,680 sq m plot in Mumbai’s BKC for ₹351 crore

National Bank for Agriculture and Rural Development (NABARD) has acquired a prime commercial property in Mumbai’s Bandra-Kurla Complex (BKC) from Mahanagar Telephone Nigam Limited (MTNL) in a transaction valued at ₹350.72 crore, according to property registration documents accessed by CRE Matrix.

According to the documents, the transaction pertains to plot number R4 in the GN Block of BKC, and the deal was executed through a deed of assignment of leasehold property, registered on May 8, 2026.

The land parcel measures approximately 2,680 sq m, while the built-up area on the property is approximately 4,021.43 sq m. The transaction attracted a stamp duty payment of ₹21.04 crore, according to the documents.

The original lessee of the property was MTNL, while the leasehold rights have now been assigned to NABARD. The land itself belongs to the Mumbai Metropolitan Region Development Authority (MMRDA), the lessor and special planning authority of BKC, India’s costliest commercial business district.

According to CRE Matrix, the original 80-year lease was granted by MMRDA to MTNL, commencing in April 1998, and giving MTNL leasehold rights until approximately April 2078. MTNL, which is no longer operationally active at this BKC site, obtained MMRDA’s consent in February 2026 and then assigned the entire unexpired 52-year lease to NABARD.

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“NABARD now steps into MTNL’s shoes as the sub-lessee/leaseholder directly under MMRDA. It takes over the property with approximately 4,021 sq. mtrs. of built-up space across two buildings at BKC Plot R-4 for its own institutional use. In essence, NABARD has acquired a 52-year leasehold in a prime BKC property at an all-in cost of Rs. 350.72 Crore, and will occupy and manage the premises going forward,” CRE Matrix said.

A list of queries has been sent to NABARD, MTNL and MMRDA. The story will be updated if a response is received.

Real estate experts say that the MTNL-NABARD deal underscores a broader trend of public sector entities monetising legacy land banks and non-core real estate assets to unlock value.

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According to the documents, the allotment pertains to amalgamated plots C-81 and C-82 located in the G Block of BKC. Together, the plots measure 10,995 sq m, or approximately 1.1 lakh sq ft, and have been leased to the NSE for 80 years.

The documents further showed that the maximum permissible built-up area on the land parcel is around 43,980 sq m, equivalent to nearly 4.7 lakh sq ft. The transaction was executed at an estimated rate of ₹3.87 lakh per sq m, translating to around ₹36,000 per sq ft. HT Real Estate had reported in March 2026 that the Bombay Stock Exchange (BSE) had approached MMRDA seeking land allotment in Bandra Kurla Complex (BKC) to expand its operational footprint in Mumbai.

Earlier this week, the MMRDA put nine prime plots in the Bandra Kurla Complex (BKC) on the block, with an eye on shoring up revenues and reducing dependence on financial institutions.

The nine plots have a combined area of around 53,461 square metres (about 13 acres), and the MMRDA is hoping to raise at least ₹9,284.88 crore by offering them on long-term lease, based on the reserve prices mentioned in the tender floated on May 11.

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such as the GST, the Reserve Bank of India, the Income Tax Department, and the Family Court. The US Consulate also has a sprawling campus inside BKC.