In a significant move within Mumbai’s real estate circle, the state-run telecom company Mahanagar Telephone Nigam Ltd (MTNL) has officially cleared the sale of its residential property in the high-profile Bandra Kurla Complex (BKC). The property is being sold to the National Bank for Agriculture and Rural Development (NABARD) for a total of ₹350.72 crore.
This decision was finalized by the MTNL board through a formal resolution and has been reported to the stock exchanges. The deal represents a major step in the government’s plan to help the struggling telecom firm raise funds by selling assets it no longer strictly needs for its core operations.
Details of the BKC property
The asset, known as the GN Block, is a residential housing complex located at MMRDA Plot No. R-4 in Bandra East. It consists of 28 residential quarters and sits on a land parcel of approximately 2,680 square meters. With a total built-up area exceeding 4,019 square meters, the property is situated in one of India’s most expensive and sought-after business districts.
How the deal works
This is a Government-to-Government (G2G) transfer, meaning the property is moving from one state-owned entity to another. Because it is a direct sale between government bodies, it avoids the long process of open-market bidding.
According to the agreement:
- NABARD will pay for the stamp duty, registration fees, and other legal costs.
- MTNL is responsible for clearing any outstanding dues on the property before the final transfer.
- MTNL will also pay a fee to the National Land Monetisation Corporation (NLMC), which oversees the sale of government land.
Why is this sale important?
MTNL has faced financial challenges for several years, including high debt and falling revenues. To address this, the Union Cabinet approved a revival plan in 2019 that focuses on “asset monetization.” This essentially means turning unused land and buildings into cash to pay off debts or improve services.
For NABARD, which already has its headquarters in BKC, acquiring this nearby residential block is a strategic move to provide housing or expansion space in a prime location.
The bigger picture
The government has set ambitious targets for MTNL to raise over ₹4,500 crore through such sales in the coming year. While BSNL (the other state telecom giant) has already sold several land parcels, this BKC deal is one of the first major successes for MTNL in Mumbai. It signals a focused effort by the government to unlock the value of prime real estate held by public sector companies to stabilize their finances.
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Disclaimer: This article is for informational purposes only. The details mentioned are based on recent regulatory filings and public news reports. Readers should verify official documents for financial or legal decisions.
Source – ET Realty
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