Debt-ridden MP govt plans to raise funds by selling properties:Assets worth crores to be sold from Kerala to Mumbai; talks underway to acquire central holdings too

The Madhya Pradesh government is carrying a massive debt of Rs 4 lakh 64 thousand crore. To reduce this burden, it is preparing to sell or rent out government-owned properties located in other states. Many of these assets are unused, stuck in disputes, or occupied. The government is now collecting complete details so that these assets can be monetised and used to raise funds. Departments asked for full asset details The Finance Department has written to all departments. It has asked for information on: The aim is to prepare a list of all government assets outside Madhya Pradesh. This information will help raise money through sale or lease. Database being prepared According to ministry officials, the Public Asset Management Department is creating a national-level database of such properties. This department will design a long-term plan to monetise these assets. The state owns many valuable properties from Wayanad in Kerala to Mumbai and Jhansi, worth crores of rupees. Several of them are neither being used properly nor legally in the state’s control. Beenachi Estate deal in Kerala awaiting MP Cabinet approval A government company, Provident Investment Company Limited (PICL), owns 554.05 acres of the Beenachi Estate in Wayanad, Kerala. Out of this, 453.96 acres were taken over by the Kerala government under the Kerala Private Forest Act, 1971. PICL challenged this in the Kerala High Court. On 3 November 2023, the High Court directed both states to settle the issue through talks. Several meetings were held. In the final meeting on 12 February 2021, both sides agreed that: Kerala has already given in-principle approval. However, the Madhya Pradesh Cabinet has yet to approve the deal. Officials say the MP government must decide soon, as Kerala will hold elections in March 2026. The land is valued in billions of rupees. Mumbai ‘Princess Building’ declared unsafe Madhya Pradesh owns a three-storey property called the Princess Building in a prime Mumbai locality. It covers 2295.16 sq m and houses 153 tenants. On 20 February 2023, the Brihanmumbai Municipal Corporation declared it dangerous. PICL then contacted the Maharashtra Building Repairs and Reconstruction Board to rebuild the structure. A Redensification Scheme has been approved.M/s Habinova Developers LLP has been selected as the developer. The firm has already paid Rs 3.76 crore to PICL as compensation. The old building will be demolished and a modern complex built in its place. This is expected to bring significant revenue to the government. 2.5 acres in Goregaon occupied, Rs 77 crore rent unpaid In Goregaon, Mumbai, MP owns 2.5 acres (10,460 sq m) of land. It is occupied by Tech Venture Limited, whose rent dues have reached Rs 77.15 crore. The market value of the land is over Rs 1.28 lakh per sq m.On 30 September 2025, PICL increased the rent 60 times. The company did not pay the higher rent. PICL has now started legal action to remove the occupant. Letters have been sent to local officials, asking them to disconnect electricity and water and clear the premises. Nagpur Bus Depot land returned to MP, mutation pending In Nagpur, the MP Road Transport Corporation bought 37,107 sq ft of land from the Defence Department in 1956. But in 2018, the local Superintendent of Land Records transferred the plot to the Maharashtra government. After a long legal battle, the Deputy Director of Land Records cancelled this order on 3 July 2025 and restored MP’s ownership. However, the land has not yet been officially transferred (mutation) because the certified copy of the order has not been received. Officials say this will be completed soon. The value of this 3-acre plot is around Rs 150 crore. MP working to reclaim 19 acres of land in Jhansi In Jhansi, 19 acres of land belonging to Madhya Pradesh are in the possession of the Uttar Pradesh government. This land, known as Kothi Paran, dates back to the Gwalior princely state. Government records from 1948 also show it as MP property. The Public Works Department is now taking steps to reclaim it. Official correspondence between both states is ongoing. Status quo ordered on Jhansi Bus Depot land Another plot in Jhansi is also disputed.MP bought 1373.80 sq m for a bus depot in 1994. This case is in the Allahabad High Court. On 28 May 2025, the court ordered both states to maintain status quo until the matter is decided. High Court stay on NTC’s 5 mill lands Around 294 acres of land belonging to five National Textile Corporation mills in Madhya Pradesh are also disputed. Three mills are in Indore, one in Ujjain and one in Bhopal. These lands were leased to run the mills. Under a revival scheme, five mills were to be sold to operate two mills, but NTC violated the conditions. In 2022, the Revenue Department ordered the cancellation of the lease and retrieval of the land.NTC challenged this in the High Court, which has kept the matter on hold for two and a half years. Claim on 1200 acres of Nepa Mill land The Centre is preparing to sell the historic Nepa Limited in Burhanpur. Out of its 1199 acres, MP has claimed 527 acres. The state says this land originally belonged to the Forest or Revenue Departments and was never permanently allotted to the mill. The state wants this land back so it can be auctioned. 101 properties sold in 5 years Since the Public Asset Management Department was set up in 2020, the government has sold 101 properties inside and outside MP.It has raised Rs 110.88 crore through these sales. Unused government properties are auctioned to generate revenue. The funds are then used for development works and debt repayment.