However, by the 1920s, the Government of Bombay ordered the Railway to hand over the section between Churchgate and Colaba to facilitate the development of Backbay Reclamation project, now Nariman Point.

The line was then extended to the Bombay Backbay station by 1866, and started its regular local service to Viraur the following year.

In the year 1872, the railway obtained permission from the Bombay Government to extend the line to Colaba, and build a goods station.

The new station consisted of a stone facade and a carriage porch at the South, a tower with a pitch tiled roof was located at its southwest corner.

[5] In 1920s, when the Backbay Reclamation project was under progress, the government ordered that the section between Churchgate and Colaba be relinquished, to allow unrestricted access.