Pune Lease Row: Bank Of Maharashtra Sources Say 'Rs 1,116 Crore Figure Exaggerated'

Last Updated:April 28, 2026, 11:56 IST

Based on documents accessed by CNN-News18, the estimated lease cost over 15 years is closer to Rs 406 crore, contrary to the Rs 1,116 crore figure that has been reported.

Amid the row over Bank of Maharashtra’s Rs 1,116 crore lease of a Pune office, top sources within the bank have clarified their stance. Based on documents accessed by CNN-News18, the estimated lease cost over 15 years is closer to Rs 406 crore, contrary to the Rs 1,116 crore figure that has been reported.

Another claim alleges a Rs 41.5 crore loss due to excess area being leased. However, the agreement signed by both parties states that rent is paid only for the usable carpet area, not the entire built-up space. As a result, the actual expense would be around Rs 5–6 crore – equivalent to roughly three months’ rent.

Explaining the decision, bank sources said the property was finalised because the bank’s existing Lokmangal office in Pune is already at full capacity. The new Montclaire space is intended to support expansion, not replace the current premises.

“The bank followed a formal and transparent process through a Request for Proposal issued in October 2024. Comparisons being made with property registration values (Index II) don’t really apply here, as commercial leases work differently," said a source familiar with the agreement.

“The lease is a commercially sound, legally compliant, and operationally necessary expansion decision, with full flexibility to exit within three months and limited financial exposure of Rs 5-6 crore. Allegations of inflated liability, area mismatch, or irregularities are factually incorrect and based on misinterpretation of contractual and tender documents," the source added.

Bank officials further clarified that the notional rent over a 15-year period is estimated at around Rs 406 crore. The usable carpet area, as mentioned in the document, is 1,16,843.76 sq ft, with rent charged at approximately Rs 152 per sq ft – amounting to about Rs 1.77 crore per month for the tenure from January 2025 to January 2040.

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