The Railway Land Development Authority (RLDA) has shortlisted four out of 16 developers that have bid for the development of a prime 2.5- acre land in South Mumbai’s plush Mahalaxmi locality, a project with an estimated revenue potential of around Rs 10,000 crore, said people with direct knowledge of the matter.
The tender has drawn participation from top developers, making it the most competitive bids for a government-owned land parcel. The e-bidding took place on Tuesday.
According to information reviewed by The Economic Times, the Lodha Group, Sobha Ltd, Dineshchandra R Agrawal Infracon and Millennia Realtors have moved to the next round.
The bidders who were not shortlisted include Godrej Properties, L&T Realty, K Raheja Corp, Oberoi Realty, Aurum Real Estate Developers, Welspun Realty, Shree Naman Developers and Safal Construction.
Some of the developers who have not been selected for the next round are exploring legal options highlighting lenient bidding criteria and a potential loss to the exchequer, said people in the know.
Among the key criteria, the bidder is expected to have completed either one realty project with a minimum built-up area of 24,566 sq meter or multiple projects with a cumulative built-up area of at least 61,415 sq meter during the last 10 years.
The bidder should also have either a minimum average annual gross turnover of Rs 400 crore during the three preceding financial years or a minimum net worth of Rs 400 crore as of March 2025.
The plot overlooking the Mahalaxmi Racecourse is located in one of Mumbai’s most valuable precincts and carries an estimated development potential of nearly 850,000 sq ft. The redevelopment is structured on a revenue-sharing model expected to fetch the RLDA Rs 4,000-5,000 crore, depending on the final share ratio.
The Mahalaxmi project is expected to set a benchmark for future redevelopment tenders in Mumbai, given its location, scale and potential revenue yield. Evaluation of the bids is currently underway, and the final award is expected to be announced after detailed technical and financial assessments.