Oberoi Realty Limited has emerged as the highest bidder for a prime parcel of railway land in Bandra East, Mumbai, quoting a bid of ₹5,400 crore (Net Present Value) for a 99-year lease. The land, measuring approximately 45,371 square metres (about 11 acres), is located adjoining the Western Express Highway and holds significant development potential with an inherent Floor Space Index (FSI) of around 19.50 lakh square feet.
The Railway Land Development Authority (RLDA), a statutory body under the Ministry of Railways, Government of India, invited bids for the long-term lease to develop this strategically positioned plot. Financial bids were opened on February 4, 2026, with Oberoi Realty’s offer standing as the highest. The company has since received queries from stakeholders and issued clarifications in a follow-up disclosure on February 5, 2026.
The bid amount of ₹5,400 crore represents the NPV of payments to RLDA, structured as follows:
- An upfront payment of ₹495 crore, comprising ₹247.50 crore payable within 30 days of the letter of demand and another ₹247.50 crore within 150 days.
- The remaining ₹4,905 crore (NPV) to be paid over time until 2038 through a revenue-sharing model, where the company will pay 45% of the higher of projected or actual gross revenues from the project. This revenue share continues until the NPV of payments (discounted at 10.75%) reaches ₹4,905 crore.
Oberoi Realty will bear the full cost of development and construction on the site. The land’s prime location near key connectivity hubs and its substantial FSI potential position it as a high-value opportunity for mixed-use or large-scale residential/commercial development in one of Mumbai’s sought-after micro-markets.
The company awaits further communication from RLDA regarding the next steps in the process, including issuance of the letter of demand and finalization of the lease agreement.
This win strengthens Oberoi Realty’s land bank in Mumbai’s western suburbs, aligning with its strategy to expand premium developments in high-growth areas.
