RLDA Moves Ahead With Auction of Prime Mumbai Land Parcels; Bandra East Plot Priced at ₹5,365 Crore

Mumbai:
The Railway Land Development Authority (RLDA) has pushed forward with the auction of three high-value land parcels in Mumbai, marking a significant step in the monetisation of railway-owned land in the city. While bids for two plots at Mahalaxmi and Parel have already been opened this year, the largest and most valuable parcel—located in Bandra East—is scheduled to have its bids opened on Thursday, January 8.

The auctions have drawn mixed responses from developers, reflecting varying commercial prospects, location dynamics, and development obligations attached to each parcel.

Bandra East Plot Commands the Highest Valuation

Among the three parcels, the Bandra East land stands out both in size and value. Spread across 45,371 square metres, the plot carries a reserve price of ₹5,365 crore, making it the most expensive property currently being auctioned by the RLDA in Mumbai.

A senior RLDA official confirmed that the plot’s premium valuation is driven by its strategic location. Situated approximately 300 to 500 metres from Bandra railway station and adjacent to the Western Express Highway, the parcel offers strong connectivity to major transport corridors. Its proximity to the Bandra-Kurla Complex (BKC) and the Andheri-Kurla Road positions it as a prime site for high-end office and retail development.

The opening of bids for this parcel is being closely watched by the real estate sector, given its scale, location advantages, and potential to attract large institutional and commercial developers.

Mahalaxmi Auction Sees Strong Developer Interest

In contrast to the anticipation around Bandra East, the auction of the 2.67-acre land parcel at Mahalaxmi has already delivered robust results. The parcel attracted competitive bids from major developers, including Lodha Group, Dineshchandra R Agarwal Infracon, and Sobha Realty.

Dineshchandra R Agarwal Infracon emerged as the highest bidder, quoting ₹2,250 crore for the Mahalaxmi plot. The bid was significantly higher than the reserve price of ₹993.30 crore, indicating strong developer confidence in the location and its redevelopment potential.

RLDA officials viewed the response at Mahalaxmi as a positive outcome, reinforcing the appeal of centrally located parcels with fewer development constraints.

Limited Interest for Parel’s Supari Baug Plot

The response to the Parel land parcel, located at Supari Baug, was comparatively muted. According to RLDA officials, the plot received interest from only one bidder—Dineshchandra R Agarwal Infracon.

Despite the limited participation, the official stated that the bid was still “worth considering” when evaluated against the reserve price set for the land. When asked whether the authority would consider re-tendering the plot due to the single bid, the official said it would be premature to comment and that a final decision would be taken at a higher-level meeting.

Residential Location and Railway Obligations Affect Parel Demand

Officials acknowledged that the Parel plot had been expected to attract broader developer interest. However, several factors appear to have dampened demand. The land is located within a predominantly residential area and suffers from poor road connectivity, limiting its commercial appeal.

Additionally, the successful bidder for the Parel plot would be required to construct 616 residential units for railway staff, as an existing railway colony occupies the land. This obligation significantly increases project complexity and cost, which may have discouraged multiple developers from participating in the bidding process.

These constraints set the Parel parcel apart from the Mahalaxmi and Bandra East plots, which are more aligned with commercial and mixed-use development.

Profile of the Leading Bidder

Dineshchandra R Agarwal Infracon, the highest bidder for the Mahalaxmi plot and the sole bidder for the Parel parcel, is an Ahmedabad-based company with operations spanning over five decades, according to information available on its official website.

The company has also purchased electoral bonds during the 2023 Lok Sabha elections, contributing funds to political parties including the Bharatiya Janata Party and the Shiv Sena. The company was unavailable for comment on its bids or future development plans.

Strategic Importance of RLDA Auctions

The ongoing auctions underline RLDA’s broader strategy of unlocking value from railway land assets in major urban centres. Mumbai, with its high land prices and sustained demand for commercial space, remains a key focus area for such initiatives.

The varied response to the three parcels highlights how factors such as location, connectivity, permissible land use, and additional obligations influence developer interest and bidding behaviour.

What Happens Next

With bids for the Bandra East parcel set to open on January 8, attention now shifts to whether the plot will attract strong competition comparable to Mahalaxmi. RLDA officials are expected to review the outcomes of all three auctions before taking decisions on acceptance, negotiations, or possible re-tendering, particularly in the case of the Parel plot.

The results of these auctions are likely to shape future RLDA land monetisation efforts in Mumbai and provide insights into developer sentiment amid evolving urban and commercial real estate dynamics.