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Mahanagar Telephone Nigam Ltd has received board approval to sell its residential property block in Mumbai's Bandra Kurla Complex to NABARD for INR 350.72 crore through a government-to-government transaction. The asset, known as GN Block BKC Quarters, comprises 28 residential units spread over a prime plot in one of the city's most sought-after commercial districts. The sale forms part of MTNL's ongoing non-core asset monetisation programme approved by the government. NABARD will bear stamp duty and registration costs, while MTNL will clear prior dues. The transaction is expected to support MTNL's financial restructuring while unlocking value from high-potential urban real estate.
Mahanagar Telephone Nigam Ltd has received board approval for the sale of its residential property block located in Mumbai's Bandra Kurla Complex, marking another step in the monetisation of surplus assets by the state-owned telecom operator. The property will be transferred to the National Bank for Agriculture and Rural Development through a government-to-government transaction for a consideration of INR 350.72 crore. Advertisement
The residential asset, known as the GN Block BKC Quarters, is situated on Plot No. R-4 at Bandra (East), one of Mumbai's most prominent commercial districts. The property comprises 28 residential quarters built over a plot area of 2,680 sq m, with a total built-up area of 4,019.02 sq m. The transaction has been structured as a direct sale, avoiding an open-market bidding process.
As per the approved terms, stamp duty, registration charges and other incidental expenses related to the transaction will be borne by NABARD. MTNL will be responsible for clearing all dues related to the property that accrued prior to the transfer date. In addition, the company will bear the fee payable to the National Land Monetisation Corporation in line with the letter of undertaking executed earlier this year.
The sale has been undertaken in accordance with the presidential approval granted in July 2020 for monetisation of MTNL's non-core assets under its articles of association. It also follows clearance received in the past month from the Alternative Mechanism, a government-appointed body that evaluates and approves strategic asset sales by public sector undertakings.
Asset monetisation has become a critical element of MTNL's financial strategy as the company continues to address operational and balance sheet challenges. The telecom operator has historically held substantial land and property assets across key urban centres, many of which are no longer aligned with its core operations. The sale of the BKC residential block reflects a focused effort to unlock value from these holdings while transferring ownership to another public sector institution.
Bandra Kurla Complex remains one of the most sought-after business districts in the country, hosting headquarters and regional offices of banks, financial institutions and multinational corporations. The location and scale of the residential asset add strategic significance to the transaction, particularly for an institution such as NABARD with a growing operational footprint.
The proceeds from the sale are expected to support MTNL's broader restructuring and financial management efforts, as the company continues to rationalise assets and reduce liabilities through government-approved monetisation initiatives.
Source - PTI
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