Amid reports claiming a ₹1,116 crore lease liability linked to Bank of Maharashtra’s new office premises in Pune, senior sources in the bank have dismissed the figures as misleading and based on incorrect assumptions rather than actual contractual terms.
According to officials familiar with the matter, a review of the lease documents indicates that the total notional lease outflow over a 15-year period is estimated at around ₹406 crore, excluding applicable taxes, which is significantly lower than the amount reported in sections of the media.
The bank also refuted allegations of a ₹41.5 crore loss due to leasing excess space. Sources clarified that the agreement clearly states rent is payable only on the usable carpet area.
They further pointed out that the lease does not contain any lock-in period and includes a three-month termination clause, limiting the bank’s maximum financial exposure at any given time to around ₹5 crore to ₹6 crore, equivalent to three months’ rent.
Explaining the need for the additional premises, officials said the bank’s existing Lokmangal office in Pune is functioning at full capacity, and the newly leased Montclaire premises have been taken to support future expansion, not to replace current offices.
Sources said the existing building is more than 40 years old and does not allow vertical or structural expansion, making additional office space necessary.
“The bank followed a formal and transparent process through a Request for Proposal issued in October 2024,” a source aware of the transaction said.
Calling the decision commercially sound and legally compliant, officials said the expansion was operationally necessary and offers full flexibility to exit within three months.
They added that allegations regarding inflated liability, excess area, or procedural irregularities are factually incorrect and stem from misinterpretation of lease and tender documents.
According to officials, the lease is based on a usable carpet area of around 1,16,843 sq ft, with rent fixed at approximately ₹152 per sq ft, resulting in a monthly outflow of nearly ₹1.77 crore, excluding taxes.
The agreement includes escalation clauses at specified intervals and is valid for a tenure of up to 15 years, from January 2025 to January 2040.